Analyst Gabe Moreen of Mizuho Securities reiterated a Buy rating on Energy Transfer (ET – Research Report), with a price target of $18.00.
Gabe Moreen has given his Buy rating due to a combination of factors related to Energy Transfer’s strategic positioning and financial prospects. Energy Transfer has a significant capital expenditure program, estimated at $2 billion to $3 billion, which suggests a strong pipeline of growth opportunities within the company’s operational footprint. Despite some uncertainties regarding specific large-scale projects, Energy Transfer’s history of mergers and acquisitions indicates a proactive approach to expansion, and their involvement in the acquisition of Sunoco by Energy Transfer Partners could bring additional benefits to the company.
Moreover, Moreen anticipates that Energy Transfer’s leverage is improving, potentially falling below the targeted range, which could enable more aggressive capital returns to shareholders. The company’s current credit ratings support this possibility, with positive outlooks for credit upgrades by Moody’s and Fitch. This financial flexibility, combined with the company’s discounted valuation, makes a compelling case for unit repurchases as an effective means of returning value to shareholders. Additionally, while facing some headwinds with the Lake Charles LNG project, Energy Transfer’s overall growth and synergy prospects, including those from the Crestwood Equity Partners acquisition, appear to be strong.
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Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ET in relation to earlier this year.
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Energy Transfer (ET) Company Description:
Energy Transfer LP provides natural gas pipeline transportation and transmission services. Its projects include Marcus Hook Industrial Complex, Mariner east Pipelines, Mont Belvieu facility, Lone Star Express Expansion, Bakken Pipeline and Lake Charles LNG. Energy Transfer was founded in September 2002 and is headquartered in Dallas, TX.
Read More on ET:
- Energy Transfer LP Secures $3.8 Billion in Public Offerings
- Sunoco LP Maintains Quarterly Distribution
- Energy Transfer LP raises quarterly distribution 3.3% to 31.5c per share
- Energy Transfer call volume above normal and directionally bullish
- Sunoco LP to Acquire NuStar Energy L.P. in Transaction Valued at $7.3 Billion
