Mizuho Securities Starts Energy Transfer Partners (ETP) at Buy
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- China Oceanwide to Acquire Genworth Financial (GNW) for $2.7B
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Mizuho Securities initiates coverage on Energy Transfer Partners (NYSE: ETP) with a Buy rating and a price target of $45.00.
Analyst Brian Zarahn commented, "We are initiating coverage of ETP with a Buy rating and $45 price target, based on the average of our $49 discounted cash flow model (10.5% discount rate) and $41 EV/Adjusted EBITDA (11x multiple in 2018, discounted 1 year to 2017) valuation methodologies. We believe ETP offers an interesting risk-reward value proposition with as the only investment grade MLP with double-digit yield and visibility on distribution coverage improvement from gas, NGL and crude infrastructure assets entering service through year end 2017. Distribution coverage improvement is supported by more than $1 billion general partner reductions and contributions from $9 billion organic projects entering service 2H16-2017. Though the Dakota Access crude pipe project is currently in regulatory limbo, we assume the project is approved though in-service date will likely be later than expected. Longer term, ETP’s high general partner splits are a headwind for future distribution growth, but at an 11% yield, we expect price appreciation from gradual yield compression (multiple expansion) from distribution coverage improvement."
Shares of Energy Transfer Partners closed at $37.36 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rodman & Renshaw Starts Abraxas Petroleum (AXAS) at Buy
- SunTrust Raises Price Target on E*TRADE Financial (ETFC) to $31 Following Solid 3Q
- AMD (AMD) Q3 'Solid' - Jefferies
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesCrude Oil
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!