Shares of the leading midstream energy company, Energy Transfer (NYSE:ET) have outperformed the S&P 500 Index (SPX) over the past several years. ET stock has more than doubled in three years, compared to an increase of 44% in the S&P 500 Index. Despite the outperformance, UBS analyst Shneur Gershuni reiterated a Buy recommendation on the company that transports oil and gas products. The top analyst has a price target of $22 on ET stock, implying a stellar upside potential of 73.64% from current levels.
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Before we dig deeper, investors should note that TipRanks identifies the Top Wall Street analysts per sector, per timeframe, and against different benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations. Following the ratings, TipRanks’ algorithms calculate the statistical significance of each rating, the analysts’ overall success rate, and the average return.
Top Analysts Rate ET Stock a Buy
Including Gershuni, ET stock has received six unanimous Buy recommendations from Top Wall Street analysts. The analysts’ bullish outlook is supported by the company’s ability to generate strong cash flows. Furthermore, its fee-based earnings provide stability and restrict commodity price sensitivity risk.
Further, ET’s diversified portfolios of energy assets in North America augur well for growth. Additionally, with assets located in every significant supply basin and access to the major demand markets, ET is well-positioned to generate excess cash flow consistently.
Another key highlight is that management and insiders own significant stakes (about 13% of ET’s total common units outstanding) in the company, which indicates their confidence in the prospects of the company.
ET is a Top Dividend Stock
Besides for capital appreciation, ET is famous for consistently enhancing its shareholders’ returns through higher dividend payments. The company recently increased the quarterly cash distribution to $0.3075 per share from $0.305.
ET stock offers a lucrative forward yield of 9.71%. Further, the company’s management expects to increase its future dividend by 3-5% annually.
What is the Price Target for ET Stock?
ET stock sports an average price target of $17.83 (based on the price targets given by top analysts), reflecting an upside potential of 40.73%. Overall, ET stock carries a Strong Buy consensus rating on TipRanks.
