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Analyst Recommendations for ETP, ETE, and SXL Post-3Q15 Earnings

Kurt Gallon

How 3 Energy Transfer Group MLPs Performed in 3Q15

(Continued from Prior Part)

Analysts’ ratings                                                           

In this article, we’ll look at what Wall Street analysts recommend for the three major MLPs of Energy Transfer Group—Energy Transfer Partners (ETP), Energy Transfer Equity (ETE), and Sunoco Logistics Partners (SXL)—following their 3Q15 earnings announcements.

Energy Transfer Partners

85.7% of analysts surveyed rate ETP as a “buy,” and the remaining ~14.3% rate it as a “hold.” ETP’s consensus analyst target price of $61.1 implies a price return of 59.7% in the next 12 months from its November 12, 2015, closing price of $38.25.

The most recent recommendations by Credit Suisse (CS) and Raymond James rate ETP as “outperform,” which is equivalent to a “buy.” They have assigned target prices of $68 and $48, respectively, to ETP.

Energy Transfer Equity

As with ETP, 85.7% of analysts surveyed rate ETE as a “buy,” and the remaining ~14.3% rate it as a “hold.” ETE’s consensus analyst target price of $35.9 implies a price return of 97.5% in the next 12 months from its November 12, 2015, closing price of $18.17.

The two most recent recommendations by EVA Dimensions and Raymond James rate ETE as a “hold” and a “strong buy.” Raymond James has assigned ETE a target price of $28.

Sunoco Logistics Partners

71.4% of analysts surveyed rate SXL as a “buy” and the remaining ~28.6% rate it as a “hold.” SXL’s consensus analyst target price of $40.6 implies a price return of 46.1% in the next 12 months from its November 12, 2015, closing price of $27.79.

The two most recent recommendations by RBC Capital Markets and Credit Suisse rate SXL as “sector perform” and “outperform,” with target prices of $38 and $50, respectively.

Key ETFs

You can include these MLPs in your portfolio by buying individual common units listed on a stock exchange, or through ETFs. Together, ETP and SXL account for 11.7% of the Alerian MLP ETF (AMLP). ETE forms 0.52% of the Guggenheim Raymond James SB-1 Equity ETF (RYJ).

For more such indicator series on midstream companies, check out Market Realist’s Master Limited Partnerships page.

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