Will This Upgrade Help EnLink Midstream Partners (ENLK) Stock Today?

NEW YORK (TheStreet) -- Enlink Midstream Partners LP (ENLK) was upgraded to "outperform" from "perform" at Oppenheimer on Thursday after the firm said it believed it underestimated the energy service company's 2015 distribution growth prospects.

Oppenheimer said it is anticipating an increase in 2015 distribution growth.

"This growth is expected to be driven primarily by dropdowns, organic growth projects and growth associated with the DVN assets," the firm said.

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Separately, TheStreet Ratings team rates ENLINK MIDSTREAM PARTNERS LP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENLINK MIDSTREAM PARTNERS LP (ENLK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ENLK's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 62.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 333.33% and other important driving factors, this stock has surged by 55.49% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ENLK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 840.9% when compared to the same quarter one year prior, rising from -$5.95 million to $44.10 million.
  • ENLINK MIDSTREAM PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENLINK MIDSTREAM PARTNERS LP reported poor results of -$1.71 versus -$1.01 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus -$1.71).
  • The gross profit margin for ENLINK MIDSTREAM PARTNERS LP is rather low; currently it is at 19.04%. Regardless of ENLK's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.10% trails the industry average.

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