Energy Transfer LP initiated with a Buy at Citi

Citi analyst Spiro Dounis initiated coverage of Energy Transfer LP with a Buy rating and $16 price target. The analyst launched coverage of 23 midstream stocks with a "constructive cash flow outlook" but acknowledges the "need to be selective in this environment." The sector offers a "compelling combination of growth and yield," Dounis tells investors in a research note. His top picks are Enterprise Products Partners LP (EPD), Targa Resources (TRGP) and Cheniere Energy (LNG). Dounis says that with leverage and capital spending "down substantially," the midstream sector has "arguably never been better prepared for macro headwinds."