8 Nov

Could ETP See A Rating Upgrade after 3Q17 Earnings?

WRITTEN BY Kurt Gallon

Energy Transfer Partners

75.0% of analysts surveyed by Reuters rate Energy Transfer Partners (ETP) a “buy” as of November 7, and the remaining 25.0% rate it a “hold.” ETP could see a rating upgrade following its 3Q17 earnings announcement, considering the partnership’s strong 3Q17 operating performance and positive updates on a few of its major projects, including the Rover Pipeline and Revolution System. Goldman Sachs recently downgraded ETP to “neutral” from “buy.” Overall, ETP has seen four rating updates in 2017, including two downgrades and two upgrades.

Could ETP See A Rating Upgrade after 3Q17 Earnings?

ETP is currently trading below the low range of analysts’ target price. ETP’s average target price of $26 implies a huge ~50% upside potential from the current price levels.  ETP’s peers MPLX LP (MPLX), Enterprise Product Partners (EPD), and Williams Partners (WPZ), have “buy” ratings from 94.1%, 91.7%, and 77.8% of analysts, respectively.

Energy Transfer Equity

71.0% of analysts rate Energy Transfer Equity (ETE) a “buy” as of November 7, and the remaining 29.0% rate it a “hold.” While Goldman Sachs downgraded ETP, at the same time, it upgraded ETE to “buy” from “neutral.” Overall, ETE has seen six rating updates in 2017 to date, including four upgrades, one downgrade, and one new coverage. ETE’s average target price of $20.6 implies ~10% upside potential from the current price levels.

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

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