Energy Transfer LP (NYSE:ET) Receives Consensus Rating of “Buy” from Brokerages

Shares of Energy Transfer LP (NYSE:ET) have earned an average rating of “Buy” from the fifteen brokerages that are currently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold rating, eleven have issued a buy rating and three have issued a strong buy rating on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $23.50.

Several brokerages have issued reports on ET. Morgan Stanley raised their price objective on shares of Energy Transfer from $21.00 to $23.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 27th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $23.00 target price (up from $21.00) on shares of Energy Transfer in a research note on Tuesday, July 21st. Jefferies Financial Group upgraded Energy Transfer from a “hold” rating to a “buy” rating and set a $23.00 price target on the stock in a report on Tuesday, May 26th. UBS Group reissued a “buy” rating on shares of Energy Transfer in a research note on Tuesday, May 12th. Finally, Citigroup restated a “buy” rating and set a $23.00 price objective (up from $22.00) on shares of Energy Transfer in a report on Thursday, May 7th.

Energy Transfer News Summary

Here are the key news stories impacting Energy Transfer this week:

• Positive Sentiment: Energy Transfer was upgraded to Strong Buy after analysts cited reduced project-execution risk and a raised full-year EBITDA outlook. First-quarter EBITDA reportedly increased about 20% year over year to approximately $4.9 billion, while guidance was raised to as much as $18.6 billion. NGL debottlenecking and the Hugh Brinson Pipeline are progressing ahead of or on schedule, potentially supporting additional earnings growth. Energy Transfer: Strong Buy On A Quiet Multiple, A Loud Guidance Raise
• Positive Sentiment: The partnership announced its nineteenth consecutive quarterly cash-distribution increase, raising the payment to $0.34 per common unit, or $1.36 annualized. The distribution is payable August 19 to unitholders of record August 7, reinforcing ET’s appeal to income-focused investors and signaling confidence in cash-flow growth. Energy Transfer Announces Nineteenth Consecutive Increase in Quarterly Cash Distribution
• Positive Sentiment: Analysts see potential for faster distribution growth, with a projected 2027 payout of approximately $1.416 per unit and a forward yield above 7%. Diversification across midstream businesses and leverage below management’s target range further support the bullish income thesis. Energy Transfer: A 7% Yield With Upsizing Distribution Growth On The Horizon
• Neutral Sentiment: ET is being featured as a low-beta, relatively defensive stock amid market uncertainty and higher oil prices, which may attract investors seeking stability. Zacks.com Featured Highlights
• Negative Sentiment: Leverage of roughly 3.85 times EBITDA remains higher than that of some peers, potentially limiting valuation expansion and keeping investors focused on debt reduction and distribution coverage. Energy Transfer: A 7% Yield With Upsizing Distribution Growth On The Horizon

Institutional Trading of Energy Transfer

A number of large investors have recently made changes to their positions in ET. Basepoint Wealth LLC purchased a new position in Energy Transfer in the 4th quarter worth about $25,000. Gables Capital Management Inc. boosted its position in Energy Transfer by 60.0% in the 4th quarter. Gables Capital Management Inc. now owns 1,600 shares of the pipeline company’s stock valued at $26,000 after buying an additional 600 shares during the period. Sarver Vrooman Wealth Advisors purchased a new stake in Energy Transfer in the 4th quarter valued at about $32,000. Cassaday & Co Wealth Management LLC bought a new position in Energy Transfer in the 1st quarter worth about $35,000. Finally, Navalign LLC bought a new position in Energy Transfer in the 4th quarter worth about $37,000. 38.22% of the stock is owned by hedge funds and other institutional investors.

Energy Transfer Price Performance

Energy Transfer stock opened at $20.23 on Wednesday. The firm has a 50-day moving average price of $19.54 and a 200-day moving average price of $19.04. The firm has a market capitalization of $69.62 billion, a PE ratio of 16.86, a price-to-earnings-growth ratio of 1.15 and a beta of 0.55. The company has a current ratio of 1.17, a quick ratio of 0.93 and a debt-to-equity ratio of 1.50. Energy Transfer has a 12-month low of $16.18 and a 12-month high of $20.70.

Energy Transfer (NYSE:ET) last released its quarterly earnings results on Tuesday, May 5th. The pipeline company reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.05). The firm had revenue of $27.77 billion for the quarter, compared to analysts’ expectations of $25.78 billion. Energy Transfer had a return on equity of 9.77% and a net margin of 4.66%.Energy Transfer’s revenue for the quarter was up 32.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.36 earnings per share. As a group, equities research analysts forecast that Energy Transfer will post 1.44 EPS for the current year.

Energy Transfer Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Friday, August 7th will be given a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 6.7%. This is a positive change from Energy Transfer’s previous quarterly dividend of $0.34. The ex-dividend date is Friday, August 7th. Energy Transfer’s dividend payout ratio is 112.50%.

About Energy Transfer

Energy Transfer (NYSE: ET) is a Dallas-based midstream energy company that develops and operates infrastructure for the transportation, storage and processing of hydrocarbons. The company’s operations focus on moving and storing natural gas, natural gas liquids (NGLs), crude oil and refined products through an integrated network of pipelines, terminals, storage facilities and processing plants. Energy Transfer provides core midstream services such as gathering, compression, fractionation, processing, and bulk transportation to support production and downstream supply chains.

Its asset base spans an extensive network across the United States, connecting producing regions, processing centers, petrochemical hubs and coastal and inland markets.