Stifel Resumes Energy Transfer Coverage With Buy Rating and $25 Target

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โดย Insider Monkey·US·Read original
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Stifel resumed coverage of Energy Transfer LP with a Buy rating and a $25 price target, implying 16% upside from current levels. The firm called the midstream operator undervalued and diversified, citing rising natural gas demand from the power sector, incremental Permian Basin gathering and processing and egress opportunities, and continued global growth in NGL exports. Energy Transfer's NGL transportation volumes rose 13% year over year in the second quarter and its NGL exports rose 25% year over year, both records for the partnership, and the company expects to spend between $5.6 billion and $5.9 billion in organic growth capital expenditures in 2026, much of it directed toward natural gas and NGL infrastructure. The stock has surged almost 30% since the beginning of 2026, and the company carries an annual dividend yield of 6.31% while targeting long-term annual distribution growth of 3% to 5%. Stifel's call reinforces the bull case, though elevated capital spending and the risk that data center-driven gas demand expectations prove overly optimistic remain key concerns.

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Stifel resumed coverage with a Buy rating and $25 price target, calling Energy Transfer undervalued

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