The dropdown master limited partnership model is not broken following FERC's order to remove the income tax allowance for cost-of-service pipelines, Mizuho analyst Brian Zarahn tells investors in a research note. While structural changes are needed to improve investor sentiment, growth visibility remains from "strong parents," Zarahn adds. He recommends dropdown MLPs focus more on discounted per unit growth, not distribution growth, and reduce equity issuance. The analyst reaffirms Buy ratings on Valero Energy Partners (VLP), Shell Midstream (SHLX), Phillips 66 Partners (PSXP) and BP Midstream (BPMP). He believes all four have "minimal to no expected equity needs in 2018."