Magellan Midstream Partners in 2Q15: Wall Street’s Targets
Magellan Midstream Partners Reports Mixed 2Q15 Results
Wall Street targets for Magellan Midstream Partners
Of the analysts surveyed by Bloomberg, 76% rate Magellan Midstream Partners (MMP) a “buy” and 24% rate it a “hold.” There are no “sell” recommendations related to the MLP. The consensus target price for MMP is $82.50. It’s currently trading at $70.20. If the stock indeed attains the target price within a year, it would mean a 17.5% return for investors.
Individual ratings
Some broker recommendations and target prices for Magellan Midstream are discussed here:
-
Ladenburg Thalmann is most optimistic about MMP. It recommends MMP as a “buy” with a target price of $91. This would mean a 30% return within a year given the stock’s current price.
-
RBC Capital Markets and Credit Suisse (CS) each give MMP a target price of $89. This would mean an upside of 27% based on its current market price.
-
Goldman Sachs (GS) and Wunderlich Securities each give MMP a target price of $83, which is closest to the consensus price of $82.50.
-
Stifel Financial provides the most pessimistic target price of all the recommendations. Its target price for MMP is $77, and that would still mean an upside of 10% within a year.
The above table shows recommendations and target prices for Magellan Midstream Partners according to some of the brokers surveyed.
MMP forms 7.4% of the Alerian MLP ETF (AMLP).
Rose Rock Midstream (RRMS) and Western Refining Logistics (WNRL) are other MLPs involved in crude oil transport. Global Partners (GLP) operates refined products terminals. GLP forms 3.9% of the Yorkville High Income MLP ETF (YMLP).
To learn more about Magellan Midstream, read our 2Q15 pre-earnings series, Will Magellan Midstream Partners Beat 2Q15 Estimates?
Browse this series on Market Realist: