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EPD, ETE, PAA, and MMP: What Do Analysts Recommend?

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Analysts’ recommendations

All of the analysts surveyed by Reuters covering Enterprise Products Partners (EPD) and MPLX (MPLX) rated the stocks as “buy.” About 88% of the analysts covering Energy Transfer Equity (ETE) rated it as a “buy,” while 12% rated it as a “hold.” Roughly 59% of the analysts covering Magellan Midstream Partners (MMP) rated it as a “buy.” About 58% of the analysts rated Plains All American Pipeline (PAA) as a “buy,” 38% rated it as a “hold,” and ~4% rated it as a “sell.”

On September 24, Stifel raised its rating for Plains All American Pipeline to “buy” from “hold.” Stifel also raised its target price for Plains All American Pipeline from $26 to $28. The above graph shows analysts’ recommendations for the five stocks.

Upside potential

Based on the median target price provided by analysts, Energy Transfer Equity has the highest upside potential among the five stocks. Energy Transfer Equity has a median target price of $22, which implies an upside potential of 26% from its current price of $17.48.

MPLX, Plains All American Pipeline, Enterprise Products Partners, and Magellan Midstream Partners have upside potentials of 25%, 16%, 15%, and 12%, respectively, based on their median target prices. The median target prices for MPLX, Plains All American Pipeline, Enterprise Products Partners, and Magellan Midstream Partners are $43, $28, $33.5, and $76.5, respectively.

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