Shares of Equitrans Midstream (NYSE:ETRN) surged at the time of writing, which is an unexpected consequence of a provision included in the recently agreed debt ceiling deal. This provision is poised to expedite the completion of the Mountain Valley Pipeline, surprising and thrilling market observers.
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Despite the need for approval from both the House and the Senate for the deal to pass, which introduces a measure of uncertainty, Wells Fargo analysts contend that Equitrans, inclusive of the Mountain Valley Pipeline, should be valued at $13 per share. Wells Fargo projects that, assuming approval, the project could be finalized by the end of the year.
RBC Capital, buoyed by this development, upgraded its rating of Equitrans from Sector Perform to Outperform, alongside a price target increase from $7 to $10. This rating reflects the likelihood of the Mountain Valley Pipeline project’s advancement and its subsequent influence on Equitrans’ valuation.
However, the rest of Wall Street doesn’t appear to be so optimistic. Indeed, analysts have an average price target of $6.67 per share on ETRN stock, implying over 18% downside risk.
