- Energy Transfer Partners (ETP -2.6%) is downgraded to Hold from Buy at Stifel, which says ETP's valuation seems high given the looming challenges associated with the merger of Energy Transfer Equity (ETE -2%) and Williams (WMB, WPZ).
- Stifel also continues to assume ETP will require $500M of equity capital to complete its 2016 budget, which it believes is another reason to be cautious.
- Current multiples do not appear excessive, given ETP's diversified largely fee-based assets, but the firm expects near-term challenges that may limit further expansion.
- Stifel also believes ETP's distribution is secure and the 13.4% yield is attractive, but near-term challenges may limit price appreciation.
- Now read Energy Transfer Partners can sail through this storm without cutting dividends
Energy Transfer Partners cut to Hold at Stifel, citing "looming challenges"
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Symbol | Last Price | % Chg |
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ET | - | - |
Energy Transfer LP Common Units |