Energy Transfer Duo Offers High Upside Potential


Nov. 20 2020, Updated 1:43 p.m. ET

Recent market performance

Energy Transfer Partners (ETP) and its GP (general partner), Energy Transfer Equity (ETE), are among the top midstream companies that offer high upside potentials.

ETP and ETE have fallen 8.7% and 17.3%, respectively, since the start of 2018. ETE’s underperformance relative to ETP’s can be attributed to flat distribution at the LP (limited partnership) during the fourth quarter. ETE continues to see new 52-week lows.

For a detailed analysis of ETE’s and ETP’s recent market performances, read ETE Falls 8.0% in March, Sees 52-Week Lows: Can It Bounce Back? and ETP: New Export Terminal, Bayou Bridge Pipeline, and More.

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Analysts’ recommendations

A total of 75.0% of the analysts surveyed by Reuters have rated Energy Transfer Partners as a “buy” as of March 30, 2018, while the remaining 25.0% have rated it as a “hold.” ETP’s peers MPLX LP (MPLX), Williams Partners (WPZ), and Enterprise Products Partners (EPD) have “buy” ratings from 83.3%, 78.9%, and 100.0% of analysts, respectively.

On the other hand, 72.2% of analysts have rated Energy Transfer Equity as a “buy” as of March 30, 2018, and the remaining 27.8% have rated it as a “hold.”

Both ETP and ETE are currently trading below the low range of analysts’ target prices of $19 and $17, respectively. ETP’s and ETE’s average target prices of $24.2 and $20.1 imply ~48% and ~41% upside potentials, respectively, from their current price levels.


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