The ups and downs of Enterprise Products Partners’ 4Q14 results (Part 13 of 13)
What’s Wall Street saying?
In this series, we’ve seen Enterprise Products Partners’ (EPD) react positively following its latest quarter earnings release. Now let’s look at what Wall Street analysts have to say about the company.
Most rate Enterprise Products Partners a buy
Approximately 84% of Wall Street analysts tracking Enterprise Products Partners (EPD) rate it a buy or some equivalent. Approximately 16% rate the company a hold or an equivalent, while none of the analysts recommend it a sell.
This many analysts recommending a buy for Enterprise Products Partners speaks well for the company’s performance, especially in the midst of one of the most severe crude oil price slumps in history. To find out more, read Market Realist’s Are midstream energy investments safe from falling oil prices?
Analysts’ recommendations
When it comes to individual recommendations, Argus Research and Global Hunter Securities, two independent research firms, give Enterprise Products Partners (EPD) a target price of $44 and $41, respectively. Both recommend a buy or its equivalent. Enterprise Products Partners (EPD) currently trades near $35, implying 27% and 18% returns, respectively, for the next 12 months, according to these two research firms. Argus Research’s target price is the highest among the top brokers.
Another independent research firm, Capital One Securities, gives Enterprise Products Partners (EPD) the 12-month target price of $43. This target implies a ~24% return from Enterprise Products Partners over the next 12 months.
Among the investment banks, Goldman Sachs (GS) gave Enterprise Products Partners (EPD) a target price of $40. Credit Suisse, the investment arm of Credit Suisse Bank (CS), recommends an outperform target of $41. This implies an 18% return at the current price over the next one year.
Evidently, Wall Street has decent expectations for Enterprise Products Partners (EPD).
You may also invest in Alerian MLP ETF (AMLP). EPD accounts for 10% of AMLP. You should also monitor Williams Partners’ (WPZ) 4Q14 performance, which is 4.3% of AMLP.
Also check out Market Realist’s Energy & Power page.
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