Western Midstream price target raised to $41 from $38 at RBC Capital

RBC Capital analyst Elvira Scotto raised the firm’s price target on Western Midstream to $41 from $38 but keeps a Sector Perform rating on the shares as part of a broader research note previewing Q3 results for U.S. Midstream names. The firm is updating its models to reflect shifts in commodity prices, hurricane impact, and dry gas production weakness, adding that it expects most companies to maintain 2024 outlooks, the analyst tells investors in a research note. For the company, RBC notes that while the growth in the Permian, Powder River and Uinta are positive for the stock, near-term cost and recovery concerns as well as the potential for another offering of its units by Occidental Petroleum (OXY) likely cap the upside for a while.