Goldman Sachs Starts Energy Transfer Partners (ETP) at Neutral; Positive Shift, But Growth Still Slow
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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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Goldman Sachs initiates coverage on Energy Transfer Partners (NYSE: ETP) with a Neutral. PT $49.00.
Analyst, Theodore Durbin, said, "Strategically, we are positive on ETP’s efforts to rebalance its asset portfolio toward natural gas liquids (NGLs) and demand-driven natural gas pipelines, and away from Texas gas pipelines and secularly challenged propane distribution. We expect multi-year accretive “drop-downs” from parent ETE at 8-10x EBITDA multiples from ETE’s Southern Union assets. And we see long-term expansion potential from ETP’s recently acquired Citrus assets in Florida and LNG exports. ETP appears inexpensive, with its 7.6% yield trading at a 150 bp discount to peers."
However, Durbin points out that the company still faces several headwinds including: 1) Texas natural gas business decline; 2) Equity overhang from large capex; 3) No recent distribution growth; and 4) Relatively leveraged balance sheet.
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 $47.25 yesterday.
Analyst, Theodore Durbin, said, "Strategically, we are positive on ETP’s efforts to rebalance its asset portfolio toward natural gas liquids (NGLs) and demand-driven natural gas pipelines, and away from Texas gas pipelines and secularly challenged propane distribution. We expect multi-year accretive “drop-downs” from parent ETE at 8-10x EBITDA multiples from ETE’s Southern Union assets. And we see long-term expansion potential from ETP’s recently acquired Citrus assets in Florida and LNG exports. ETP appears inexpensive, with its 7.6% yield trading at a 150 bp discount to peers."
However, Durbin points out that the company still faces several headwinds including: 1) Texas natural gas business decline; 2) Equity overhang from large capex; 3) No recent distribution growth; and 4) Relatively leveraged balance sheet.
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 $47.25 yesterday.
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