Analysts’ Views on High-Yield MLP Stocks



ETP’s ratings

Of analysts surveyed by Reuters, 75% rated Energy Transfer Partners (ETP) as a “buy” and the remaining 25% rated it as a “hold.” ETP’s median price target of $24 implies a massive upside of 44% from its current price of $16.61. ETP’s ongoing efforts to reduce leverage, if successful, should reflect in its stock price going forward.

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Recommendations for EEP

The above chart compares analyst recommendations for ETP, Enbridge Energy Partners (EEP), Buckeye Partners (BPL), and Sunoco (SUN). On March 16, 2018, Ladenburg Thalmann cut Enbridge Energy Partners’ price target from $18 to $13, and downgraded EEP to “neutral” from “buy.” On March 13, 2018, JPMorgan Chase cut EEP’s price target to $15 from $16, and on February 21, 2018, Mizuho cut EEP’s price target from $17 to $15.

Approximately 16.7% of surveyed analysts rated Enbridge Energy Partners a “buy,” 66.7% rated it a “hold,” and 16.7% rated it a “sell.” Enbridge Energy Partners’ target price of $15.5 implies a 43% return in a year based on its current price of $10.83.

Recommendations for BPL and SUN

On March 15, 2018, SunTrust Robinson cut Buckeye Partners’ price target from $58 to $48. On March 13, JPMorgan Chase cut BPL’s price target from $56 to $50.

Of surveyed analysts, 40% rated Buckeye Partners a “buy” and 60% rated it a “hold.” BPL’s median price target of $55 implies a return of 30% in a year based on its current price of $42.23. Approximately 31.3% of surveyed analysts rated Sunoco a “buy,” 56.3% rated it a “hold,” and 12.5% rated it a “sell.” Sunoco’s mean price target of $32.50 implies a return of 19% based on its current price of $27.31. For more on analysts’ recommendations for top MLPs, read How Analysts Have Changed Their Views on Midstream Companies.


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