grandriver/iStock via Getty Images Summit Midstream Corp (NYSE: SMC ) has outperformed the S&P 500 by more than 35% since we last recommended investing . Despite that, we don't recommend selling, to the contrary, we recommend adding more. The company's well connected natural gas assets in an era of growing sustainable long-term natural gas demand make it an undervalued natural gas company. Summit ...
grandriver/iStock via Getty Images Summit Midstream Corp (NYSE: SMC ) has outperformed the S&P 500 by more than 35% since we last recommended investing . Despite that, we don't recommend selling, to the contrary, we recommend adding more. The company's well connected natural gas assets in an era of growing sustainable long-term natural gas demand make it an undervalued natural gas company. Summit Midstream Corp 4Q Results Summit Midstream Corp had almost $60 million in adjusted EBITDA in 4Q'25 as its system saw >2 Bcf/d of volume throughput. Summit Midstream Corp Investor Presentation The company turned that into $17 million in FCF with a very manageable 3.9x leverage ratio. That's a double-digit FCF yield on the company's $600 million market cap, not counting impressive growth opportunities in the Double E pipeline, and new gathering areas, which we'll discuss in more detail below. Summit Midstream Corp continues to have lofty interest expenses with its hefty debt load, but paying that up will rapidly increase FCF towards adjusted EBITDA. The company's closed Double E financing enables a $85 million distribution to Summit Midstream Corp with repayment of Series A dividends and future capital for growth. Summit Midstream Corp 2026 Guidance Summit Midstream Corp's 2026 guidance shows a transitory period for the company. Summit Midstream Corp Investor Presentation Summit Midstream Corp expects $245 million in adjusted EBITDA for the year at the midpoint, above the quarterly level it finished 2025 at. Volume is expected to come primarily from the Rockies segment which will see some strength going into 2026E along with the DoubleE and Mid-Con segments. Piceance remains a major weak spot. This segment remains a dead segment for 2026E with no expected well restarts through 2030E in the company's guidance. However, continued growth in other segments will more than make up. Summit Midstream Corp Double E Pipeline The Double E pipeline, 30% owned by Exxon Mobil ( XOM ), is q...
One struck a market in North Darfur and the other hit a truck carrying civilians in North Kordofan as the country’s civil war approaches its fourth year At least 28 civilians have been killed in two separate drone strikes in Sudan, according to health workers, as the country’s brutal civil war between the army and the paramilitary Rapid Support Forces approaches its fourth year . A strike hit a ma...
One struck a market in North Darfur and the other hit a truck carrying civilians in North Kordofan as the country’s civil war approaches its fourth year At least 28 civilians have been killed in two separate drone strikes in Sudan, according to health workers, as the country’s brutal civil war between the army and the paramilitary Rapid Support Forces approaches its fourth year . A strike hit a market in the town of Saraf Omra in North Darfur state on Wednesday, killing “22 people, including an infant, and injuring 17 more”, a health worker at the local clinic told AFP. Continue reading...
Alexander Sikov/iStock via Getty Images Investment Thesis In my last article on Broadcom Inc. ( AVGO ), I initiated coverage on the name by analyzing its Q1 report and by evaluating whether investors were right to be cautious on the name. I had a Buy rating on the name. Since the article was published in December 2025, the stock has lost 8.73%, underperforming the S&P 500, which lost 5% during the...
Alexander Sikov/iStock via Getty Images Investment Thesis In my last article on Broadcom Inc. ( AVGO ), I initiated coverage on the name by analyzing its Q1 report and by evaluating whether investors were right to be cautious on the name. I had a Buy rating on the name. Since the article was published in December 2025, the stock has lost 8.73%, underperforming the S&P 500, which lost 5% during the same period. The question then becomes: has anything substantially changed when it comes to the AI revolution in general and AVGO’s business in particular, which has led to such a drastic negative sentiment? Have the long-term growth prospects of AVGO dimmed either due to deteriorating demand for its chips or the Tomahawk 6? In this article, I evaluate the company’s Q1 report and dissect the aforementioned questions and re-evaluate the long-term prospects of AVGO. I also deploy an upgraded ensemble valuation model to compute the company’s updated price target. AVGO’s AI Business Enters the Acceleration Phase In my previous article, I argued that 2025 was the year when AVGO’s business had reached an inflection point. If the latest quarter was anything to go by, then 2026, in my view, should be the year when the business transitions from an inflection point to an acceleration phase. For instance, in Q1, the company’s AI semiconductor revenues saw a 106% jump y/y , coming in at $8.4 billion, surpassing management’s own guidance of $8.2 billion. The guidance was even more stunning. More specifically, management now expects Q2 AI semiconductor revenues of $10.7 billion, which would represent a y/y growth of 140%, a remarkable sequential growth in my opinion. Moreover, CEO Hock Tan also announced that the company sees AI chip revenues of over $100 billion in 2027 , which, to me, is one of the most significant takeaways from AVGO’s latest quarter. Critically, management announced that the company has secured the supply chain capacity through 2028, which lends further support to b...
Alexander Sikov/iStock via Getty Images Investment Thesis In my last article on Broadcom Inc. ( AVGO ), I initiated coverage on the name by analyzing its Q1 report and by evaluating whether investors were right to be cautious on the name. I had a Buy rating on the name. Since the article was published in December 2025, the stock has lost 8.73%, underperforming the S&P 500, which lost 5% during the...
Alexander Sikov/iStock via Getty Images Investment Thesis In my last article on Broadcom Inc. ( AVGO ), I initiated coverage on the name by analyzing its Q1 report and by evaluating whether investors were right to be cautious on the name. I had a Buy rating on the name. Since the article was published in December 2025, the stock has lost 8.73%, underperforming the S&P 500, which lost 5% during the same period. The question then becomes: has anything substantially changed when it comes to the AI revolution in general and AVGO’s business in particular, which has led to such a drastic negative sentiment? Have the long-term growth prospects of AVGO dimmed either due to deteriorating demand for its chips or the Tomahawk 6? In this article, I evaluate the company’s Q1 report and dissect the aforementioned questions and re-evaluate the long-term prospects of AVGO. I also deploy an upgraded ensemble valuation model to compute the company’s updated price target. AVGO’s AI Business Enters the Acceleration Phase In my previous article, I argued that 2025 was the year when AVGO’s business had reached an inflection point. If the latest quarter was anything to go by, then 2026, in my view, should be the year when the business transitions from an inflection point to an acceleration phase. For instance, in Q1, the company’s AI semiconductor revenues saw a 106% jump y/y , coming in at $8.4 billion, surpassing management’s own guidance of $8.2 billion. The guidance was even more stunning. More specifically, management now expects Q2 AI semiconductor revenues of $10.7 billion, which would represent a y/y growth of 140%, a remarkable sequential growth in my opinion. Moreover, CEO Hock Tan also announced that the company sees AI chip revenues of over $100 billion in 2027 , which, to me, is one of the most significant takeaways from AVGO’s latest quarter. Critically, management announced that the company has secured the supply chain capacity through 2028, which lends further support to b...
Alistair Berg/DigitalVision via Getty Images By Kevin Flanagan and Andrew Okrongly, CFA Prior to the war in the Middle East, the U.S. financial markets were being confronted with headlines and attendant concerns surrounding the credit markets. Obviously, the storyline involving the Middle East conflict is still taking center stage and will likely continue to impact markets in the weeks ahead. Howe...
Alistair Berg/DigitalVision via Getty Images By Kevin Flanagan and Andrew Okrongly, CFA Prior to the war in the Middle East, the U.S. financial markets were being confronted with headlines and attendant concerns surrounding the credit markets. Obviously, the storyline involving the Middle East conflict is still taking center stage and will likely continue to impact markets in the weeks ahead. However, we continue to believe that once the markets get a sense that the situation in the Middle East begins to de-escalate, the market focus could shift back to a pre-conflict setting. After several months of relative calm, credit markets have been a bit noisier. Spreads have drifted wider, and questions around liquidity and fundamentals—especially in private credit and BDCs—have resurfaced. Two forces are driving most of the conversation. The first is a structural shift in liquidity, as more capital—particularly retail—has moved into less liquid credit vehicles. The second is AI-driven disruption, which is beginning to reshape parts of the economy, especially software. These forces do not impact all credit equally. To see why, it helps to break credit into three broad buckets: high yield (HY), broadly syndicated/leveraged loans (BSL) and private credit (PC)—and focus less on labels and more on structure. Structure Drives Outcomes: Liquidity and Credit Quality High yield is the most liquid and accessible, widely held through mutual funds and ETFs. It also tends to be higher quality with larger issuers. The benefit is daily liquidity and real-time pricing; the tradeoff is more visible volatility as markets adjust quickly. Leveraged loans are somewhat less liquid and more institutional, but still broadly accessible. Their floating-rate structure reduces interest rate sensitivity, while strong CLO demand provides a steady source of support. This creates a middle ground: less rate risk, but greater exposure to credit fundamentals and default cycles. Private credit looks similar ...