Barclays Maintains an 'Overweight' on Enterprise Products Partners (EPD); Robust Shale Play Expansions and Low Cost of Capital Support LT Growth Prospects

Barclays maintains an 'Overweight' on Enterprise Products Partners (NYSE: EPD), raises price target to $49.00.

Barclays analyst says, "Attractive growth opportunity set across the energy value chain. Combining a 3Q beat, $4.5 billion of organic growth projects coming into service through 2014 and a low cost of equity and debt capital, EPD possesses solid growth visibility. We are raising our price target from $47 to $49. Our $49 PT is based on a 12-month distribution run rate of $2.59 (previously $2.51) and a 5.3% target yield. EPD is a core MLP holding offering an attractive risk adjusted return, in our view."

"Additional organic projects announced. Since September, EPD has proposed a variety of large organic growth projects that would begin service 2013. Key projects include 280,000 bpd Texas Express NGL pipeline JV, 800,000 bpd Wrangler crude oil pipeline to relieve the Cushing bottleneck and 125,000 bpd Marcellus ethane pipeline. Except for Texas Express ($1.1B total), project cost estimates have not yet been provided."

For more ratings news on Enterprise Products Partners click here and for the rating history of Enterprise Products Partners click here.

Shares of Enterprise Products Partners closed at $44.16 yesterday.

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