Bank of America Securities analyst Jean Ann Salisbury maintained a Buy rating on Energy Transfer (ET – Research Report) yesterday and set a price target of $23.00.
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Jean Ann Salisbury has given her Buy rating due to a combination of factors surrounding Energy Transfer’s growth potential and strategic investments. Despite a slight miss in the fourth-quarter EBITDA expectations, Energy Transfer’s conservative guidance suggests potential upward revisions throughout the year. This positions the company favorably for growth, particularly with its substantial $5 billion growth capex, which exceeds prior forecasts and focuses on short-cycle NGL EBITDA growth.
The investment in midstream capex is seen as accretive, allowing Energy Transfer to enhance its Permian processing capacity and catch up with peers in terms of volume growth. Additionally, recent project announcements like the Hugh Brinson pipeline indicate a strategic push to supply Southeast markets with Permian gas, providing a long-term advantage over competitors. These initiatives, alongside a discounted valuation, underpin the Buy rating as they promise significant returns and a robust positioning in the energy market.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $23.00 price target.