Update (9:45 a.m.): Updated with Tuesday market open information.
NEW YORK (TheStreet) -- Jefferies increased its target price on Access Midstream Partners (ACMP) to $64, increased its estimates and set a "buy" rating. The firm noted shadow backlog and acquisitions could drive incremental cash flow.
The stock was falling 2.38% to $56.08 at 9:44 a.m. on Tuesday.
Separately, TheStreet Ratings team rates ACCESS MIDSTREAM PARTNERS LP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACCESS MIDSTREAM PARTNERS LP (ACMP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ACMP's very impressive revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues leaped by 121.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ACCESS MIDSTREAM PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, ACCESS MIDSTREAM PARTNERS LP increased its bottom line by earning $1.14 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus $1.14).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 432.1% when compared to the same quarter one year prior, rising from $24.26 million to $129.06 million.
- The gross profit margin for ACCESS MIDSTREAM PARTNERS LP is currently very high, coming in at 72.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 39.33% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 172.94% to $205.96 million when compared to the same quarter last year. In addition, ACCESS MIDSTREAM PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -23.43%.
- You can view the full analysis from the report here: ACMP Ratings Report