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Research Alert: CFRA Keeps Buy Opinion On Lp Units Of Enterprise Products Partners
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Research Alert: CFRA Keeps Buy Opinion On Lp Units Of Enterprise Products Partners
Apr 30, 2024 12:01 PM

02:35 PM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price remains $30, a 9.4x multiple of enterprise value to projected 2025 EBITDA, in line with EPD's historical forward average. We lift our 2024 earnings per unit estimate by $0.09 to $2.71 and 2025's by $0.15 to $2.90. Q1 earnings per unit of $0.67 vs. $0.64, matched the consensus view. EPD is building out natural gas liquid and natural gas processing facilities in the Permian Basin, which will be needed as the Permian remains the workhorse of U.S. incremental oil production. Its NGL segment drove a 10.5% increase in Y/Y gross operating margin in Q1, with a wide variety of contributing businesses (pipelines, storage, processing, and fractionation) assisting in that regard. Meanwhile, EPD's price spreads on both propylene-related and natural gas processing activity improved in Q1 vs. 2023 averages. EPD guided to growth capex at $3.25B-$3.75B in both 2024 and 2025, which is fairly high, but manageable, in our view. Units yield 7.2%.

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