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.

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Comments (1)
  • chopchop0
    , contributor
    Comments (5360) | Send Message
    Best of breed and largest midstream pipeline MLP. Long EPD since my TPP shares were acquired several years ago.
    19 Mar 2014, 11:09 AM Reply Like
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