Hess Midstream upgraded at Raymond James as Chevron restructuring selloff overdone
Raymond James upgraded Hess Midstream (HESM) to Market Outperform with a $32 price target, citing an attractive entry point after Chevron restructuring selloff. Despite a severe Bakken contract reset reducing 2027 EBITDA by $400M and pausing distribution growth, the firm believes risks are overstated. Chevron's asset contributions and extended contracts provide value. Supported by strong free cash flow coverage, leverage is expected to decrease toward long-term targets through 2029.