uploads/2019/01/analyst-recom-4-1.jpg

High-Yield MLPs: What Wall Street Recommends

By

Updated

Analysts are bullish on ET and MPLX

Energy Transfer (ET) stock was rated a “strong buy” or “buy” by 88% of analysts surveyed by Reuters. In comparison, 86% of analysts rated MPLX (MPLX) a “strong buy” or “buy.” As we discussed in the previous part of this series, ET and MPLX are trading at attractive yields of 8.3% and 7.6%, respectively. Based on their median price targets, Energy Transfer offers an upside potential of 43% while MPLX offers an upside potential of 23% in a year.

The graph above shows analysts’ recommendations for the MLPs we’re discussing in this series. 58% of analysts rated Western Gas Equity Partners (WGP) a “buy.” It offers a potential upside of 35% based on its median price target.

Article continues below advertisement

Andeavor Logistics

Only 15% of the surveyed analysts rated Andeavor Logistics (ANDX) a “buy.” 15% rated ANDX a “sell” while the remaining 70% rated it a “hold.” ANDX offers an upside potential of 15%, based on its median price target. On January 16, Barclays raised its price target for Andeavor Logistics from $36 to $37. On January 15, Credit Suisse cut its price target for the stock from $46 to $35.

On January 16, Barclays cut its price target for Enable Midstream Partners (ENBL) from $18 to $15. Only 27% of the surveyed analysts rated ENBL a “buy.” It offers an upside potential of 11% from its current price.

Around 40% of the surveyed analysts rated EQM Midstream Partners (EQM) a “buy,” and ~42% rated Tallgrass Energy (TGE) a “buy.”

Advertisement

More From Market Realist