EnLink Midstream Partners
According to analysts’ estimates, EnLink Midstream Partners (ENLK) stock offers an upside potential of 39%—compared to its current market price of $12.82. Enlink Midstream Partners has a median target price of $17.83. Analysts seem to be cautious about the company. Among the 13 analysts tracking Enlink Midstream Partners, 11 recommended a “hold,” while two recommended a “buy.” None of the analysts recommended a “sell” as of December 12.
In October, EnLink Midstream (ENLC) agreed to buy EnLink Midstream Partners’ units that weren’t already owned by the company. The simplification transaction is expected to close in the first quarter of 2019.
So far, EnLink Midstream Partners stock has fallen 17% in 2018. During the same period, the Alerian MLP ETF (AMLP) has fallen 15%. EnLink Midstream Partners is trading at a distribution yield of 12%, which is higher than its peers’ average. EnLink Midstream Partners declared a distribution of $0.39 per unit last month. The company hasn’t changed its quarterly distribution for the past 13 consecutive quarters.
Peer’s target price
Genesis Energy (GEL) stock has a median target price of $27.11—compared to its current market price of $21.48, which indicates a potential upside of more than 26% for next year.