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What Analysts Recommend for Magellan Midstream Partners

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Analysts’ recommendations

Nearly 53% of analysts surveyed by Reuters rated Magellan Midstream Partners (MMP) as a “hold,” 37% rated it as a “buy,” and the remaining 11% rated it as a “sell.” For the next year, the median target price for the stock is $80. Currently, the stock is trading at $70.14, which implies a 14% upside from its current levels in the next year.

Magellan Midstream Partners outperformed the Alerian MLP ETF (AMLP) over the last one-year, two-year, and five-year periods. Some market participants likely thought the stock had become overpriced. As the above graph shows, “buy” recommendations for MMP fell a bit and were replaced with “hold” ratings over the last few months.

On July 19, 2017, Barclays downgraded Magellan Midstream Partners from “overweight” to “equal weight.” On July 10, Mizuho cut MMP’s price target from $74 to $72. On the other hand, UBS raised MMP to “buy” from “neutral” on July 18, 2017.

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Peer ratings

In comparison, nearly 60% of the analysts surveyed by Reuters rated ONEOK (OKE) as a “hold,” and 33% rated it as a “buy.” Nearly 97% of the analysts rated Enterprise Products Partners (EPD) as a “buy,” while 86% of the analysts surveyed by Reuters rated Energy Transfer Partners (ETP) as a “buy.”

Buckeye Partners (BPL) is scheduled to release its 2Q17 earnings on August 4, 2017. For an earnings preview of BPL, read What to Expect from Buckeye Partners’ 2Q17 Earning Release.

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