Hess Midstream LP (HESM) Stock AnalysisHESMHess Midstream LP

Hess Midstream LP is a midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to the Company and third-party customers. It owns oil, gas and produces water handling assets that are located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. Its gathering segment includes Hess North Dakota Pipeline Operations LP and Hess Water Services Holdings LLC, which owns natural gas gathering and compression, crude oil gathering, and produced water gathering and disposal. Its processing and storage segment includes Hess TGP Operations LP and Hess Mentor Storage Holdings LLC, which owns Tioga gas plant, an equity investment in LM4 Joint Venture, and mentor storage terminal. Its terminaling and export segment includes Hess North Dakota Export Logistics Operations LP, which owns Ramberg Terminal Facility, Tioga Rail Terminal, Crude Oil Rail Cars, Johnson's Corner Header System, and other DAPL connections. It operates in the Energy sector (CRUDE PETROLEUM & NATURAL GAS industry).

Hess Midstream LP is currently not a strong buy due to its low RSI of 17.041, indicating it is oversold, and a forward P/E ratio of 9.9108, which suggests it is undervalued. However, the recent downgrade from analysts, with Morgan Stanley reducing its price target to $30, reflects concerns about future growth and profitability. The company also faces risks from its restructuring, which may impact EBITDA and shareholder returns. Given these factors, it is prudent to hold rather than buy at this time.

7 analysts cover HESM: 6 rate it Buy, 1 Hold and 0 Sell. The average price target is 36.50.