Equities researchers at Morgan Stanley have raised their price target for Energy Transfer (NYSE: ET) from $19.00 to $21.00. This adjustment reflects the firm’s current “equal weight” rating on the pipeline company’s stock, suggesting a potential upside of 14.16% based on current trading prices. The report was issued to clients and investors on February 17, 2024.
Several other analysts have also recently evaluated Energy Transfer’s performance. On January 7, 2024, UBS Group reiterated a “buy” rating for the company’s shares. In a separate report on November 24, 2023, JPMorgan Chase & Co. reduced their price target from $22.00 to $21.00 while maintaining an “overweight” rating. Weiss Ratings reaffirmed a “buy (b-)” rating on December 24, 2023, and TD Cowen increased their target price to $21.00 on February 18, 2024, also issuing a “buy” rating. Scotiabank confirmed an “outperform” rating on January 16, 2024. Currently, ten analysts have assigned a “buy” rating to the stock, while two have issued a “hold” rating. Overall, the consensus rating stands at “Moderate Buy” with a target price of $21.40, according to data from MarketBeat.
In its latest quarterly earnings report, Energy Transfer disclosed earnings of $0.25 per share, falling short of analysts’ consensus estimates of $0.34 per share by $0.09. The company reported revenue of $25.32 billion for the quarter, surpassing expectations of $23.56 billion. The net margin was approximately 5.11%, with a return on equity of 10.17%. Notably, quarterly revenue increased by 29.6% compared to the same period last year, when the firm posted earnings of $0.29 per share. Analysts project that Energy Transfer will achieve earnings of $1.46 per share for the current fiscal year.
Institutional investors have been active in trading Energy Transfer shares. Morgan Stanley increased its stake by 41.6% in the fourth quarter, now holding 86,310,272 shares valued at approximately $1.42 billion. CIBC Bancorp USA Inc. entered a new position in the third quarter, valued at around $264.31 million, while Alps Advisors Inc. boosted their stake by 8.0%, now owning 83,843,087 shares valued at $1.38 billion. Additionally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings by 9.3% in the second quarter, bringing its total to 21,353,476 shares worth approximately $387.14 million. Invesco Ltd. also grew its stake by 3.2% during the third quarter. Institutional ownership in Energy Transfer currently stands at 38.22%.
Based in Dallas, Energy Transfer is a midstream energy company focused on developing and operating infrastructure for the transportation, storage, and processing of hydrocarbons. The company’s extensive network connects producing regions, processing centers, and markets across the United States, facilitating the movement of natural gas, natural gas liquids, crude oil, and refined products. Energy Transfer provides essential midstream services that support production and downstream supply chains.
Investors and market watchers will continue to monitor the company’s performance as it navigates the energy sector, particularly in light of these recent price target adjustments and earnings results.
