- Energy Transfer Equity (ETE -0.5%) is reinstated with a Neutral rating and $17 price target at Goldman Sachs, which says ETE's solid fundamentals already are baked into the share price.
- ETE offers “a comprehensive footprint of well-positioned, integrated midstream assets, with a visible backlog of largely fee-based projects expected to come online in the next few years," Goldman says, adding that the market has assigned little credit to the proposed $8.6B Lake Charles LNG export project and thus could be a potential positive catalyst.
- However, the firm also notes “several negatives" to the ETE story, including high cost of capital at some subsidiaries and high leverage.