Energy Transfer, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Jean Ann Salisbury from Bank of America Securities maintained a Buy rating on the stock and has a $22.00 price target.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Jean Ann Salisbury has given her Buy rating due to a combination of factors that highlight Energy Transfer’s strategic positioning and future growth potential. Despite the company’s EBITDA being slightly below the third-quarter consensus, this was attributed to a temporary issue related to interstate gas contracts. Energy Transfer is expected to benefit from the upcoming narrowing of the Waha spread as new gas pipelines come online, which should stabilize their earnings.
Furthermore, the company has announced several new projects, including data center agreements and potential pipeline conversions, which indicate a proactive approach to managing and expanding their asset base. While these projects require significant capital expenditure, they are seen as necessary steps to maintain and potentially grow EBITDA. With the stock’s current valuation considered to be near a floor value, along with an attractive and secure dividend, Salisbury maintains a Buy rating, seeing the stock as undervalued with room for appreciation.
According to TipRanks, Ann Salisbury is an analyst with an average return of -2.9% and a 46.28% success rate. Ann Salisbury covers the Energy sector, focusing on stocks such as Targa Resources, Oneok, and Cheniere Energy.
In another report released on October 31, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $18.50 price target.