Seeking Alpha

Enterprise Products upgraded at Credit Suisse on distribution growth trends

  • Enterprise Products Partners (EPD +1.2%) is upgraded to Outperform from Neutral with a $78 target price, raised from $71, at Credit Suisse, based on strong distribution growth trends.
  • A 1.5x distribution coverage at its current distribution growth trajectory and an investment of 3x-4x the capital to sustain that growth trajectory imply EPD has the ability to grow the distribution faster, or imply higher terminal growth rate vs. most MLPs, the firm calculates.
  • With the 1.5x coverage, Credit Suisse thinks EPD could grow its distribution at 6% annually for the next seven years with zero capital investment just by squeezing coverage.
Comments (1)
  • chopchop0
    , contributor
    Comments (3344) | Send Message
    Best of breed and largest midstream pipeline MLP. Long EPD since my TPP shares were acquired several years ago.
    19 Mar, 11:09 AM Reply Like
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