Energy Transfer Equity’s 4Q 2014 earnings: A merger dominates (Part 7 of 7)
Short-term targets
In the previous part of this series, we saw Energy Transfer Equity’s (ETE) performance in the stock market. In this part, we take a look at the short-term targets Wall Street analysts have for the company.
Analysts ratings
When it comes to ratings, 90% of analysts have rated ETE as a “buy” and 10% have rated it as a “hold.” There are no “sell” recommendations for the company.
Analyst recommendations post–4Q 2014 results
Coming to individual recommendations, the highest target price for ETP comes from Credit Suisse, which has provided a target price of $78 for the company. ETE currently trades at $63.15, implying returns of 19% over the next 12 months.
Next, RBC Capital Markets has a provided a target price of $75 per unit, implying returns of ~19% in the next 12 months.
Raymond James has a provided a target price of $70 per unit, implying returns of ~11% in the next 12 months.
Energy Transfer Equity is a master limited partnership (or MLP). It provides natural gas, natural gas liquids (or NGLs), and crude oil midstream, transportation, and storage services through its subsidiary companies, which include Energy Transfer Partners (ETP), Regency Energy Partners (RGP), and Sunoco Logistics (SXL). Most of these companies are components of the Alerian MLP ETF (AMLP), making up ~16% of the ETF.
To get exposure to the energy sector in general, you may also consider the Energy Select Sector SPDR ETF (XLE).
Check out Market Realist’s Energy & Power page for more interesting articles about the industry and to learn what’s happening in the sector right now.
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