Enterprise Products Partners stock initiated with Hold rating at TD Cowen

Published 07/07/2025, 11:34
Enterprise Products Partners stock initiated with Hold rating at TD Cowen

Investing.com - TD Cowen initiated coverage on Enterprise Products Partners (NYSE:EPD) with a Hold rating and a price target of $33.00 on Monday. According to InvestingPro data, the stock currently trades near Fair Value, with analysts’ targets ranging from $32.11 to $40.00.

The research firm noted that Enterprise Products Partners is emerging from a period of elevated capital expenditure focused on the Permian natural gas liquids (NGL) value chain.

TD Cowen expressed concern that some of these newly developed assets could face underutilization as they come online, citing sufficient NGL infrastructure across the industry when accounting for competitor projects.

The analysis also highlighted that tailwinds in the company’s Refined Product segment, which had been strong over the past couple of years, are continuing to normalize.

Enterprise Products Partners, a midstream energy company, operates approximately 50,000 miles of natural gas, NGL, crude oil, refined products, and petrochemical pipelines throughout the United States.

In other recent news, Enterprise Products Partners reported its first-quarter 2025 earnings, which showed a slight miss on analyst expectations with earnings per share at $0.64, compared to the forecasted $0.70. Despite this, the company’s revenue exceeded expectations, reaching $15.42 billion against an anticipated $14.14 billion. The company also announced a 3.9% increase in its distribution to $0.535 per common unit. Meanwhile, Enterprise Products Partners has priced a $2 billion public offering of senior notes, with proceeds intended for general corporate purposes, including growth capital investments and debt repayment.

Additionally, UBS has reiterated its buy rating for Enterprise Products Partners, while slightly adjusting its second-quarter 2025 EBITDA estimate downward to $2,420 million from $2,516 million. This adjustment is due to various factors, including unplanned downtime and reduced exports to China. In regulatory developments, the U.S. Department of Commerce’s Bureau of Industry and Security indicated plans to deny Enterprise’s requests to export ethane to China, impacting approximately 2.2 million barrels. Enterprise has a 20-day period to respond to this notice.

Lastly, Enterprise Products Partners received a letter from the Bureau of Industry and Security, though the contents of the letter have not been disclosed. These developments highlight the company’s ongoing financial activities and regulatory challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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