<div id="readability-page-1"><div><ul> <li>Recently, Raymond James cut its rating on Hess Midstream from Outperform to Market Perform, citing limited near-term growth prospects, while the company also reshaped its board after director Andrew B. Walz resigned to become an executive officer at Chevron.</li> <li>This combination of a cooler analyst view and governance changes tied to Chevron’s influence raises fresh questions about Hess Midstream’s medium-term growth path and independence.</li> <li>Next, we’ll examine how Raymond James’ downgrade, centered on subdued growth expectations, may affect Hess Midstream’s previously growth-focused investment narrative.</li> </ul><p>We've found 14 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.</p><h2>Hess Midstream Investment Narrative Recap</h2><p>To own Hess Midstream, you really need to believe in the durability of its fee-based contracts with Hess / Chevron and the long life of its Bakken infrastructure. Raymond James’ downgrade, focused on softer near term growth, does not materially change the key near term catalyst, which is consistent cash generation supporting distributions, or the biggest risk, which remains Hess Midstream’s reliance on Hess / Chevron’s production and capital allocation in the Bakken.</p> <p>The recent 2026 guidance, pointing to relatively flat earnings and limited volume growth, is the most relevant backdrop for this downgrade. It reinforces that Hess Midstream may face a quieter growth period before any potential pickup, which puts even more attention on how Chevron prioritizes Bakken development and midstream utilization, and how reliably the company can keep funding its targeted distribution growth while managing leverage and capital needs.</p> <p>But while distributions have been growing, investors should also be aware of the concentration risk around Chevron’s long term drilling decisions and how...</p> <p>Read the full narrative on Hess Midstream (it's free!)</p><p>Hess Midstream's narrative projects $2.1 billion revenue and $769.1 million earnings by 2028.</p><p>Uncover how Hess Midstream's forecasts yield a $36.86 fair value, a 6% upside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/afcd6266-a782-464a-86b4-183a94f7ba49/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/afcd6266-a782-464a-86b4-183a94f7ba49/chart/quote-price"/><figcaption>HESM 1-Year Stock Price Chart</figcaption></figure> <p>Six fair value estimates from the Simply Wall St Community span roughly US$11.87 to US$73.11 per share, highlighting very different views of Hess Midstream’s potential. When you set these side by side with its dependence on Chevron backed minimum volume commitments, it underlines why many readers will want to compare several viewpoints before deciding how comfortable they are with that single customer exposure.</p><p>Explore 6 other fair value estimates on Hess Midstream - why the stock might be worth less than half the current price!</p><h2>Build Your Own Hess Midstream Narrative</h2><p>Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.</p><ul><li>A great starting point for your Hess Midstream research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.</li><li>Our free Hess Midstream research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hess Midstream's overall financial health at a glance.</li></ul><h2>Interested In Other Possibilities?</h2><p>Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:</p><ul><li>Find companies with promising cash flow potential yet trading below their fair value.</li><li>AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.</li><li>Trump has pledged to &#34;unleash&#34; American oil and gas and these 22 US stocks have developments that are poised to benefit.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

HESM

<p>Raymond James downgraded Hess Midstream from Outperform to Market Perform, citing limited growth prospects. The resignation of director Andrew B. Walz to join Chevron has raised concerns about Hess Midstream's growth and independence. The downgrade emphasizes the company's reliance on Hess/Chevron's production and capital allocation, with flat earnings projected for 2026. Investors should consider the risks associated with Chevron's drilling decisions and the varying fair value estimates for Hess Midstream, which range from $11.87 to $73.11 per share.</p>

Is Raymond James' Downgrade and Chevron-tied Board Shift Altering The Investment Case For Hess Midstream (HESM)?