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Research Alert: CFRA Keeps Hold Opinion On Lp Units Of Energy Transfer

05/07/2021 11:42

03:35 PM EDT, 05/07/2021 (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 of $11, raised $4, reflects an 8.1x multiple of enterprise value to projected '22 EBITDA, below peers, but merited by above-average regulatory risk in our view. We lift our '21 earnings per unit estimate by $0.98 to $1.97 (mainly from a blowout first quarter result), but trim '22's by $0.10 to $1.12. ET posts Q1 earnings per unit of $1.22, vs. $0.20, beating consensus by $0.92. The sizable beat was driven mainly by ET's energy storage business, which was able to sell power in TX to power plants and cities during the winter storm at premium rates. We still see potential near-term risk to the Dakota Access Pipeline(DAPL) from Court rulings, but expect the Court to rule on whether ET can continue operating concurrent with the required environmental impact statement. We also note that volumes on DAPL have been dropping in part from lower producer spending, although that seems like it is beginning to change. Units yield 6.6%.