Market Realist

Energy Transfer Partners: Analyst Ratings Following 2Q15 Results

Kurt Gallon

Energy Transfer Partners: 2Q Earnings Dip but Beat Estimates

(Continued from Prior Part)

Analysts ratings

In this article, we’ll look at what Wall Street analysts recommend for Energy Transfer Partners (ETP). At a broader level, ~69.2% of analysts surveyed by Bloomberg rate Energy Transfer Partners a “buy,” and the remaining ~30.8% rate it a “hold.” The MLP has no “sell” recommendation on it.

The median broker target price of $66.5 for ETP would imply a ~40.35% return in the next 12 months.

ETP peers MarkWest Energy Partners (MWE) and Oneok Partners (OKS) have “hold” ratings from 72.2% and 56.3% of analysts surveyed, respectively. Meanwhile, 58.3% of analysts rate EnLink Midstream Partners (ENLK) a “buy” and 23.1% rate DCP Midstream Partners (DPM) a “sell.”

Energy Transfer Equity (ETE) and Sonoco Logistics (SXL), which are part of the Energy Transfer group, have “buy” ratings from 88.9% and 73.3% of analysts surveyed, respectively.

Individual ratings

Here are some of the recent analyst ratings of ETP:

  • Credit Suisse (CS), Raymond James, and RBC Capital Markets rate ETP “outperform,” which is equivalent to “buy.” These analysts assign ETP price targets of $67, $53, and $74, respectively. These would imply ~41.4%, 11.7%, and 56.1% 12- month returns, respectively.

  • Wells Fargo Securities (WFC) also rates ETP “outperform” but with no associated target price.

  • Barclays (BCS) rates ETP “overweight” with a target price of $70. This would imply a ~47.7% return.

  • Morningstar and Stifel rate ETP a “buy” with target prices of $66 and $60, respectively. These would imply ~39.3% and ~26.6% returns, respectively.

Key ETFs and stocks

Investors can get direct exposure to ETP by buying its common units listed on the New York Stock Exchange. Indirect exposure is possible via exchange-traded funds such as the Alerian MLP ETF (AMLP). ETP alone constitutes ~7.6% of AMLP.

For more post-earnings coverage on midstream companies, check out our Master Limited Partnerships page.

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