Wells Fargo Downgrades Energy Transfer Partners (ETP) to Market Perform; Secure Yield But Low Gas Prices And Financing Could Limit Growth
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Price: $21.47 --0%
Rating Summary:
17 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo downgraded Energy Transfer Partners (NYSE: ETP) to Market Perform, price target range lowered from $48-52 to $46-50.
Wells analyst says, "While we expect a modest distribution increase towards the end of 2012, ETP faces near-term headwinds including (1) low natural gas prices which could impact gathering and pipeline volumes and (2) significant financing requirements around the expected $2.0B dropdown of Citrus. To management’s credit, ETP’s shift into NGL infrastructure (via the LDH acquisition) should result in distribution growth acceleration in 2013 and beyond (our 5-year CAGR is 2.3%); however we believe this growth outlook appears reflected in ETP’s current valuation. We prefer Outperform-rated Energy Transfer Equity (NYSE: ETE) ($43.86) and Regency Energy Partners (NYSE: RGP) ($26.72) as vehicles to own for exposure to the Energy Transfer story."
For an analyst ratings summary and ratings history on Energy Transfer Partners click here. For more ratings news on Energy Transfer Partners click here.
Shares of Energy Transfer Partners closed at $47.94 yesterday.
Wells analyst says, "While we expect a modest distribution increase towards the end of 2012, ETP faces near-term headwinds including (1) low natural gas prices which could impact gathering and pipeline volumes and (2) significant financing requirements around the expected $2.0B dropdown of Citrus. To management’s credit, ETP’s shift into NGL infrastructure (via the LDH acquisition) should result in distribution growth acceleration in 2013 and beyond (our 5-year CAGR is 2.3%); however we believe this growth outlook appears reflected in ETP’s current valuation. We prefer Outperform-rated Energy Transfer Equity (NYSE: ETE) ($43.86) and Regency Energy Partners (NYSE: RGP) ($26.72) as vehicles to own for exposure to the Energy Transfer story."
For an analyst ratings summary and ratings history on Energy Transfer Partners click here. For more ratings news on Energy Transfer Partners click here.
Shares of Energy Transfer Partners closed at $47.94 yesterday.
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