Morgan Stanley Trims TRP and HESM Amid Midstream Shift

Morgan Stanley analysts have adopted a more cautious stance on the midstream energy sector, citing shifting market dynamics and valuation concerns. The firm downgraded TC Energy (TRP) and Hess Midstream (HESM), signaling a shift toward a more selective investment strategy. While the bank maintains a constructive outlook on specific high-quality assets, these rating cuts reflect broader headwinds in the energy infrastructure space as investors weigh capital allocation against current equity performance.