Energy Transfer: Positioned for Growth with Strategic AI Alignment and Potential Re-Rating

Mizuho Securities analyst Gabe Moreen has reiterated their bullish stance on ET stock, giving a Buy rating on February 3.

Gabe Moreen has given his Buy rating due to a combination of factors that highlight Energy Transfer’s potential for growth and value realization. The company has shown remarkable performance, significantly outperforming its peers, largely attributed to its strategic alignment with the AI/data center narrative. This has fostered investor optimism and positioned Energy Transfer as a notable player in the midstream sector.
Furthermore, the company’s robust growth outlook, underscored by promising natural gas opportunities and the expected commercialization of AI-related projects, signifies potential earnings expansion. Energy Transfer’s financial strength, evidenced by its ability to exceed fiscal guidance, combined with the prospects for enhanced capital returns and strategic project developments, supports Moreen’s optimistic stance. The undervaluation of its stock despite recent performance improvements suggests a potential for further re-rating, solidifying its position as a top pick for 2025.

In another report released on February 3, RBC Capital also maintained a Buy rating on the stock with a $23.00 price target.