NGL Energy Partners Has the Highest Upside Potential



NGL Energy Partners

Currently, NGL Energy Partners (NGL) stock offers an upside potential of 25% based on analysts’ median target price of $15.5. NGL Energy Partners closed at $12.4 as on August 27.

Among the six analysts covering NGL Energy Partners, one analyst recommended a “strong buy,” three recommended a “buy,” and two recommended a “hold.” None of the analysts recommended a “sell” as of August 28. Stifel raised NGL Energy Partners’ target price from $12.0 to $13.0 on August 14.

NGL anr

The above chart shows how analysts’ views on NGL Energy Partners changed in the last few months.

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NGL Energy Partners reported a net loss in the second quarter due to asset impairment and litigation expenses. The company’s Crude Oil Logistics segment posted 18% earnings growth in the second quarter—compared to the same period last year. NGL Energy Partners had a decent run in the past year. The company rose more than 33% during the past year. The Alerian MLP ETF (AMLP) rose 2% during the same period.

Recently, NGL Energy Partners paid a quarterly distribution of $0.39 per unit. Currently, the company is trading at a distribution yield of 12.6%—way higher than AMLP’s distribution yield of 7.4%.

Peers’ target prices

Holly Energy Partners (HEP) has an estimated downside of ~2% based on analysts’ median target price of $29.71. Currently, Holly Energy Partners is trading at $30.17.

Enable Midstream Partners (ENBL) has a median target price of $18.45—compared to its current market price of $16.63, which indicates an upside potential of 11% for the next 12 months.


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