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60% of Top Midstream Companies Have Lower Mean Price Targets Now

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Analyst recommendations for midstream companies

Six out of the top ten midstream companies currently have a lower mean price target than they had a year ago. In this series, we saw changes in analysts’ recommendations and price targets over the last 12 months for top midstream companies. Of the ten selected companies, only Energy Transfer Equity (ETE), Williams Companies (WMB), and its MLP Williams Partners (WPZ) and ONEOK (OKE) currently have a higher mean price target than what they had a year ago.

The above table compares mean price targets of selected midstream companies with their year-ago price targets. It also compares the price-return for the companies over the last one-year period as well as the upside potential based on current mean price targets. As the table shows, all the selected companies except ETE, WMB, WPZ, and OKE have lower mean price targets now than they had a year ago. Also, only Williams Companies and ONEOK generated positive price returns over the last 12-month period.

Missed targets

Of the selected companies, Energy Transfer Partners (ETP), Plains All American Pipeline (PAA), and Kinder Morgan (KMI) are currently significantly off analysts’ year-ago mean price targets. On the other hand, Williams Companies, Williams Partners, and ONEOK are closest to analysts’ year-ago mean price targets.

Upside potential

Of the selected companies, Energy Transfer Partners and Kinder Morgan have the highest upside potential of 29% and 28%, respectively, based on their mean price targets. These are followed by ETE, EPD, and WMB with a potential upside of 20%, 19%, and 19%, respectively, in a year.

For the latest coverage on midstream companies, refer to Market Realist’s Energy MLPs page.

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