Hess Midstream LP downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst John Mackay downgraded Hess Midstream LP (HESM) to Sell from Neutral with a $32 price target implying 7% downside. The firm sees a more challenging risk/reward at current share levels. Hess Midstream’s volume growth is likely to lag its midstream peers dure to a plateauing production outlook from Chevron in the basin, long-term re-contracting risk as legacy fee agreements are meaningfully above market rates, and a slowing capital returns framework, the analyst tells investors in a research note.