Will Energy Pipeline Stocks Meet Analysts’ Ratings?



Wall Street analysts are bullish on energy pipeline stocks. A number of factors can cause stock prices to deviate from analysts’ expectations. Still, the analyst ratings are based on rigorous analysis of a company’s and broader industry’s fundamentals. Let’s take a look at analysts’ ratings and price targets for top midstream energy stocks.

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Analyst ratings for energy stocks

The first of our selected energy stocks is Energy Transfer (ET). Of the 20 analysts covering the stock, 18 rated it as a “buy” or “strong buy.” The remaining two analysts rated it as a “hold.” Also, the analysts’ mean price target for ET is $20.1. It implies a massive upside potential of 69% from its current levels.

ET stock fell to near its 52-week lows in November on news of a corruption investigation relating to its pipeline approval. Since then, JP Morgan, Citigroup, and RBC cut their respective price targets on the stock. Still, the stock’s mean price target is far higher from its current price. Also, ET stock’s fall highlights investors’ concerns relating to its high leverage, past distribution cuts, and financial practices.

EPD and WMB: Analyst ratings

All of the 26 analysts covering Enterprise Products Partners (EPD) rated it as a “buy” or a “strong-buy.” The stock is trading 30% below analysts’ mean price target. Also, EPD stock rose around 6% in 2019, underperforming Kinder Morgan (KMI) and ONEOK (OKE).

In comparison, Williams Companies (WMB) is trading 23% below its mean price target of $28. A total of 18 out of 23 analysts rated it as a “buy” or “strong buy.” The remaining analysts rated it as a “hold.” Plus, four analysts revised their respective price targets for WMB downwards in November. These included analysts from UBS, Jefferies, Wells Fargo, and Raymond James.

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Recommendations for KMI and OKE

Around 61% of analysts rate ONEOK as a “buy” or “strong buy.” The stock outperformed its midstream peers in 2019. Learn more about Why ONEOK stock is Outperforming Its Peers This Year. Plus, learn more about the latest institutional activity in the stock in ONEOK Institutional Investors and Analyst Ratings.

In comparison, 52% of analysts rate Kinder Morgan as a “buy.” Additionally, the stock has an upside potential of 12% based on its mean price target. Learn more about Kinder Morgan’s performance and prospects in What Makes Kinder Morgan Stock Attractive?

Analyst ratings for energy stocks TRP and ENB

Around 68% of analysts rated Enbridge (ENB) as a “buy.” The remaining rated it as a “hold.” In comparison, 63% of analysts rated TC Energy (TRP) as a “buy” with the remaining rating it as a “hold.” Also, Enbridge has an upside potential of 8% while TC Energy has an upside potential of 5%.

UBS and RBC raised their respective price targets for Enbridge in November. Similarly, JP Morgan, Citigroup, and National Bank of Canada raised their respective price targets for TC Energy in November.

Learn more about Enbridge’s segments in Must-Know: Enbridge’s Five Business Segments. Moreover, learn about the company’s capital projects in Enbridge’s Capital Projects Should Fuel Growth. To learn more about Enbridge, read Why Enbridge Stock Is an Attractive Dividend Stock.


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