Recommendations for EPD
Of the analysts surveyed by Reuters, 50% rated Enterprise Products Partners (EPD) a “strong buy.” About 46% of analysts rated it as a “buy,” and the remaining 4% of analysts rated it as a “hold.” The mean price target for Enterprise Products Partners is $33.4, which implies upside potential of ~17% from its current price.
The above graph shows how analysts’ recommendations and mean price target for Enterprise Products Partners have changed over 12 months. As the graph shows, EPD’s mean price target has remained relatively stable over the last several months.
While Enterprise Products Partners stock has been trading range-bound for some years, as we discussed in the first part of this series, the stock offered an attractive yield over this period. The company has seen impressive distributable cash flow growth in recent quarters.
Conservative leverage, a strong distribution track record, and a backlog of capital projects makes Enterprise Products Partners’ prospects bright, which should continue to support the stock’s price, offering an attractive total return proposition to investors. Moreover, EPD’s diversified operations provide it with some cushion against volatility in any particular energy commodity.
From an industry perspective, key midstream indicators seem to be trending in the right direction for midstream stocks including Enterprise Products Partners.
For the latest coverage on energy stocks, refer to Market Realist’s Energy and Power page.