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Analyst Ratings: WMB Has the Most ‘Buys,’ WGP the Most ‘Holds’

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Energy Transfer Equity

In this article, we’ll look at the analyst recommendations for the four peers in this series. Let’s start with Energy Transfer Equity (ETE). 70.6% of analysts rate Energy Transfer Equity a “buy” as of December 12, and the remaining 29.4% rate it a “hold.” Goldman Sachs last upgraded ETE to a “buy” from “natural,” which is equivalent to “hold,” in October 2017. ETE is currently trading below the low range ($17) of analysts’ target price. ETE’s average target price of $20.4 implies ~24% upside potential from the current price levels.

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Williams Companies

Williams Companies (WMB) has the most “buy” ratings among the four peers. 73.7% of analysts rate WMB a “buy” as of December 12 while the remaining 26.3% rate it a “hold.” WMB’s highest “buy” rating might reflect its improved leverage position, low commodity price exposure, and likely tax benefits from US tax cuts. WMB’s average target price of $34.1 implies ~18% upside potential from the current price levels.

Plains GP Holdings

61.9% of analysts surveyed by Reuters rate Plains GP Holdings (PAGP) a “buy,” and the remaining 38.1% rate it a “hold.” PAGP’s average target price of $25.0 implies a ~18% upside potential from the current price levels.

Western Gas Equity Partners

Western Gas Equity Partners (WGP) has the most “hold” ratings among the selected pees. 61.9% of analysts rate WGP a “hold,” and the remaining 38.1% rate it a “buy” as of December 12. WGP is currently trading significantly below the low range ($40) of analysts’ target price. WGP’s average target price of $47.3 implies ~29.0% upside potential from the current price levels.

For more coverage on midstream companies, check out Master Limited Partnerships page.

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