How Is Wall Street Currently Rating Energy Companies?
Recent upgrades
In this part, we’ll study analysts’ most recent ratings changes for the five largest midstream companies by enterprise value.
Recently, there were no upgrades issued by Wall Street analysts for the top five midstream companies.
Recent downgrades
Kinder Morgan (KMI) was downgraded to a “hold” from an “overweight” rating by US Capital Advisors on February 24, 2016. US Capital Advisors kept KMI’s target price unchanged at $18, ~1% lower than its March 1, 2016, closing price of $18.11. US Capital Advisors expects this target price to be hit in the next 12 months.
Energy Transfer Equity (ETE) was downgraded to “market perform” from “strong buy” by Raymond James on February 26, 2016. Raymond James didn’t mention any target price for ETE.
Recent recommendations
For Enbridge (ENB), the most recent recommendation of “outperform” comes from RBC Capital Markets. It was issued on March 1, 2016. RBC Capital Markets assigned ENB the target price of $47.52, ~36% higher than its March 1 closing price of $35.06.
For TransCanada (TRP), the most recent recommendation of “buy” comes from Veritas Investment Research Company. It was issued on February 24, 2016. Veritas assigned TRP a target price of $41.83, ~14% higher than its March 1, 2016, closing price of $36.75.
For Enterprise Products Partners (EPD), the most recent recommendation of “overweight/in-line” comes from Morgan Stanley. It was issued on February 25, 2016. Morgan Stanley assigned EPD a target price of $28, ~21% higher than its March 1 closing price of $23.05.
All of the above price targets are for a 12-month period from the date of recommendation.
In the next part, we’ll delve further into the recommendations for each of these companies.
Browse this series on Market Realist: