UBS downgraded Hess Midstream LP (HESM) to Neutral from Buy with a price target of $43, down from $45. While the company’s direct commodity exposure is limited due to minimum volume commitments, there could be a pull back in activity in the Bakken if prices remain low, the analyst tells investors in a research note. UBS believes a pullback in rigs would create downside risk to Hess Midstream’s estimates for the outer years and drive a de-rating of the shares.
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