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Analysts Are Bullish on Enterprise Products Partners

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May. 16 2019, Updated 11:01 a.m. ET

Midstream stocks in 2019

Midstream stocks have been trading largely in positive territory in 2019. Many top midstream stocks have outperformed the broader market so far this year. Supportive fundamentals and greater financial discipline have brought investors’ interest back to the sector.

In this series, we’ll take a look at the performances of the largest midstream stocks by market cap and what’s driving them. We’ll also see what analysts recommend after the strong first-quarter performances by most of these top players.

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Enterprise Products Partners’ 2019 performance

Enterprise Products Partners (EPD), the largest midstream stock by market cap, has risen roughly 16% so far in 2019. The stock has outperformed the broader Energy Select Sector SPDR ETF (XLE) during this timeframe. XLE is up ~10% year-to-date. Enterprise Products reported 18% growth in its first-quarter earnings. Its stock has, however, underperformed its C corporation peers Kinder Morgan (KMI), ONEOK (OKE), and Williams Companies (WMB) in 2019.

Recommendations for EPD

Twelve of the 24 Reuters-surveyed analysts covering Enterprise Products Partners have rated it as a “strong buy,” and the remaining 12 have rated it as a “buy.” That means 100% of analysts recommend EPD as a “buy” or a “strong buy.” The graph above shows how analysts’ recommendations and mean price target for EPD have changed in the last 12 months.

The mean price target for Enterprise Products is $34, implying a potential upside of 18% from its current price. On May 2, Stifel raised its price target for Enterprise Products Partners from $32 to $34.

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