Hess Midstream Partners (NYSE:HESM) Cut to "Underweight" at JPMorgan Chase & Co.

Key Points

• JPMorgan downgraded Hess Midstream Partners to “underweight” from “neutral” and set a $39 price target, implying 2.62% upside from the prior close.
• Analyst sentiment is broadly cautious: MarketBeat reports an average rating of “Reduce” and an average price target of $37, with three Sell, three Hold, and one Buy rating.
• Hess Midstream exceeded quarterly expectations, reporting $0.75 EPS versus a $0.67 consensus estimate and $399 million in revenue, though revenue declined 3.7% year over year.

Hess Midstream Partners (NYSE:HESM - Get Free Report) was downgraded by investment analysts at JPMorgan Chase & Co. from a "neutral" rating to an "underweight" rating in a research note issued to investors on Friday, MarketBeat reports. They currently have a $39.00 price target on the stock. JPMorgan Chase & Co.'s price target indicates a potential upside of 2.62% from the company's previous close.

Several other equities research analysts also recently issued reports on HESM. Morgan Stanley reiterated an "underweight" rating and issued a $39.00 target price on shares of Hess Midstream Partners in a research note on Tuesday, July 21st. Weiss Ratings restated a "buy (b)" rating on shares of Hess Midstream Partners in a research note on Monday, September 21st. One analyst has rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $37.00.

Hess Midstream Partners Price Performance

Shares of NYSE HESM opened at $38.01 on Friday. The firm has a market cap of $7.84 billion, a PE ratio of 13.11 and a beta of 0.58. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 9.39. Hess Midstream Partners has a 1-year low of $31.63 and a 1-year high of $41.44. The company has a fifty day moving average price of $39.75 and a 200 day moving average price of $39.10.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The company reported $0.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.67 by $0.08. Hess Midstream Partners had a net margin of 23.23% and a return on equity of 92.18%. The company had revenue of $399.00 million for the quarter, compared to the consensus estimate of $395.96 million. During the same period last year, the company earned $0.74 earnings per share. The firm's revenue was down 3.7% compared to the same quarter last year. Research analysts predict that Hess Midstream Partners will post 2.94 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Hess Midstream Partners

Several institutional investors and hedge funds have recently added to or reduced their stakes in HESM. Alps Advisors Inc. grew its position in Hess Midstream Partners by 3.4% during the 4th quarter. Alps Advisors Inc. now owns 30,303,091 shares of the company's stock worth $1,045,457,000 after acquiring an additional 1,007,846 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Hess Midstream Partners by 3.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 9,081,184 shares of the company's stock valued at $313,301,000 after buying an additional 330,802 shares during the period. Bank of New York Mellon Corp increased its stake in shares of Hess Midstream Partners by 67.5% in the first quarter. Bank of New York Mellon Corp now owns 3,752,002 shares of the company's stock valued at $145,840,000 after buying an additional 1,512,007 shares during the period. TD Asset Management Inc raised its holdings in Hess Midstream Partners by 10.0% in the 4th quarter. TD Asset Management Inc now owns 2,626,438 shares of the company's stock valued at $90,612,000 after buying an additional 237,690 shares during the last quarter. Finally, Epoch Investment Partners Inc. boosted its position in Hess Midstream Partners by 12.1% during the 4th quarter. Epoch Investment Partners Inc. now owns 2,500,598 shares of the company's stock worth $86,271,000 after buying an additional 269,216 shares during the period. 98.97% of the stock is currently owned by institutional investors.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP NYSE: HESM is a fee-based midstream energy company that owns and operates infrastructure supporting crude oil, natural gas and produced-water production in the Bakken Shale of North Dakota. The partnership primarily serves Hess Corp. and other producers operating in the region.

Its assets include systems for gathering and processing natural gas, gathering and transporting crude oil, and handling and disposing of produced water. Hess Midstream also provides storage, terminal and transportation services, helping connect production sites with downstream pipelines, rail facilities and other market outlets.

The company was formed to own midstream assets previously developed or operated by Hess and began trading publicly in 2017.

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