Wunderlich Securities Downgrades Markwest Energy Partners LP On Current Valuation

In a report published Monday, Wunderlich Securities analyst Jeff Birnbaum downgraded the rating on Markwest Energy Partners LP (NYSE: MWE) from Buy to Hold, and lowered the price target from $75.00 to $70.00.

In the report, Wunderlich Securities noted, "We are downgrading the units of Markwest Energy Partners (MWE) to Hold from Buy and lowering our price target to $70 from $75. While 4Q results and 2015 guidance on adjusted EBITDA and DCF were better than many had feared, we believe MWE's current valuation fairly reflects the company's reduced nearterm distribution growth outlook. Further, significant uncertainty remains with few near-term catalysts. While we are heartened that some parts of our thesis have materialized in Markwest's revised guidance — its ability to delay capex while taking plant utilization rates higher, more limited fallout in the Marcellus & Utica from E&P capex reductions, increased hedging, and limited 2015 equity needs relative to capex — challenges remain. We currently view the risk/reward as relatively neutral."

Markwest Energy Partners closed on Friday at $64.95.