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Which High-Yield MLPs Do Analysts Recommend?


Jan. 18 2019, Updated 10:20 a.m. ET

Analysts’ recommendations

Among the high-yield MLPs that we’re discussing in this series, NGL Energy Partners (NGL) got the maximum “strong buy” or “buy” recommendations. Among the Reuters-surveyed analysts covering NGL Energy Partners, 75% rated it as a “strong buy” or “buy.” For USA Compression Partners (USAC), 71% of the analysts rated the stock as a “buy.” USA Compression Partners didn’t have any “strong buy” ratings. On January 3, UBS cut its rating for USA Compression Partners from “buy” to “neutral.” UBS also cut USA Compression Partners’ target price from $17 to $12.5.

The above graph shows analysts’ recommendations and the upside potential for the selected high-yield MLPs.

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Upside potential

Based on the median target prices of the selected stocks, EnLink Midstream (ENLC) has the highest upside potential of ~41%. NGL Energy Partners offers an upside potential of 30% from its current price. Genesis Energy (GEL) offers a potential upside of 28%.

AmeriGas Partners and Suburban Propane Partners

Around 40% of the analysts rated Suburban Propane Partners (SPH) as a “buy.” The stock offers an upside potential of 21% from the current price. In comparison, only 29% of the analysts rated AmeriGas Partners (APU) as a “buy,” 43% rated it as a “sell.” AmeriGas Partners offers a potential upside of 16% based on analysts’ median target price. On January 16, Barclays cut its target price for AmeriGas Partners from $38 to $30.

Only 33% of the surveyed analysts rated Sunoco (SUN) as a “buy.” Sunoco offers a potential upside of 7% based on its median target price.

Kinder Morgan (KMI) released its fourth-quarter results on January 16. To learn more, read Highlights from Kinder Morgan’s Fourth-Quarter Earnings.


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