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Analyzing Trends in Top Midstream Companies’ Price Targets

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Wall Street ratings

Six out of the top ten midstream companies currently have a lower mean price target than they had a year ago. Wall Street analysts likely lowered price targets for these companies in response to market conditions. In this series, we’ll take a closer look at how Wall Street ratings and price targets on some of the top midstream companies have changed over the last one-year period.

The companies we’ll discuss in this series are as follows:

  • Enterprise Products Partners (EPD)
  • Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE)
  • Magellan Midstream Partners (MMP)
  • Plains All American Pipeline (PAA)
  • Williams Partners (WPZ) and Williams Companies (WMB)
  • Kinder Morgan (KMI)
  • ONEOK (OKE)
  • Targa Resources (TRGP)
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EPD’s price targets

Of the analysts surveyed by Reuters, 96% currently rate Enterprise Products Partners as a “buy.” Of these, 48% rate EPD as a “strong buy” and 48% rate it as a “buy.” 4% of the surveyed analysts rate EPD as a “hold.” Analyst recommendations for EPD haven’t changed dramatically over the past 12 months, as the above graph shows.

EPD’s mean target price, however, fell from $32.7 in February 2017 to $31.8 currently. At the same time, EPD stock fell 6% during this period. EPD units are currently trading at $26.79. EPD’s 52-week price range is $23.59 to $29.51. Based on the mean price target, EPD has an upside potential of 19% in a year.

To learn more about factors that could drive EPD’s growth, read Enterprise Products Partners: Growth Drivers in 2018 and Beyond. For information on EPD’s 4Q17 earnings, read Why Enterprise Products Partners’ 4Q17 Earnings Rose 14%.

Next, we’ll see how ratings have evolved for the two companies in the Energy Transfer family: Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE).

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