JPMorgan Lowered Energy Transfer Equity’s Target Price

JPMorgan recently lowered Energy Transfer Equity’s (ETE) target price to $20 from $22. However, it kept its rating unchanged. ETE was last upgraded by Goldman Sachs to a “buy” from a “neutral,” which is equivalent to a “hold.” That was its sixth rating update YTD (year-to-date). Its YTD rating updates include four upgrades, one downgrade, and one new coverage. Currently, 70.6% of analysts surveyed by Reuters rate ETE a “buy,” while the remaining 29.4% rate it a “hold.”

ETE’s peers NuStar GP Holdings (NSH) and Western Gas Equity Partners (WGP) have “hold” ratings from 77.7% and 53.3% of analysts, respectively. About 61.9% of analysts rate Plains GP Holdings (PAGP) a “buy,” and 75% of analysts rate Energy Transfer Partners (ETP) a “buy.”

ETE is currently trading below the low range of analysts’ target price of $17. Its average target price of $20.40 implies a ~26% upside potential from its current price level.