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On Wednesday, Goldman Sachs updated its financial outlook for Energy Transfer (NYSE:ET), increasing the company’s price target from $19.00 to $20.00, while maintaining a Neutral stock rating. Currently trading at $18.74, the company boasts a market capitalization of $64.27 billion and offers investors a substantial 6.94% dividend yield. According to InvestingPro analysis, Energy Transfer appears slightly undervalued based on its Fair Value calculations, with analysts setting price targets ranging from $20 to $26. The firm’s analyst provided insights into the factors that will be scrutinized during the upcoming first-quarter earnings season for 2025. These factors include the performance of Permian basin activities compared to expectations, developments in gas power demand opportunities, the company’s preference for large-scale versus medium-scale capital projects, and the balance between additional returns to unitholders and potential mergers and acquisitions. InvestingPro data reveals that Energy Transfer has maintained dividend payments for 20 consecutive years and has raised its dividend for 3 consecutive years, demonstrating strong commitment to shareholder returns. Get access to 8 more exclusive ProTips and comprehensive analysis with InvestingPro.
For the first quarter of 2025, Goldman Sachs estimates Energy Transfer’s EBITDA to be $4,035 million, which is slightly below the consensus estimate of $4,054 million. This figure represents a 4% quarter-over-quarter increase, attributed to improved commodity margins in the Midstream sector and the effects of colder weather on gas transportation. However, this estimate has been revised down by 6% from earlier predictions due to slower growth in volume and margins in other areas.
Looking ahead, Goldman Sachs has updated its EBITDA forecasts for Energy Transfer to $16,195 million for the year 2025 and $16,718 million for 2026. These projections fall just short of the consensus estimates of $16,338 million for 2025 and $16,937 million for 2026. The slight increase in the estimates has led to the revised price target of $20.00. The analyst’s commentary concluded with a reiteration of the Neutral rating on Energy Transfer stock.
In other recent news, Energy Transfer has garnered significant attention from analysts. UBS reaffirmed its Buy rating on Energy Transfer, setting a price target of $24.00. This decision is based on improved operational efficiencies and favorable weather conditions, which have led UBS to increase its first-quarter 2025 EBITDA forecast to $3,951 million. Meanwhile, RBC Capital Markets also maintained its Outperform rating with a $23.00 price target, citing Energy Transfer’s strategic asset positioning and growth potential in the natural gas sector. The analysts emphasized the company’s readiness to capitalize on rising natural gas demand, particularly from data centers and LNG exports.
In related developments, Sunoco LP, whose general partner is owned by Energy Transfer, announced the pricing of a $1 billion senior notes offering due in 2033, upsized from an initial $750 million due to high demand. The proceeds will be used to repay existing debts, including the redemption of NuStar Logistics’ senior notes. Additionally, Evertz Technologies reported a third-quarter revenue increase to $136.9 million, a 1% year-over-year rise, though it missed EPS expectations with earnings of $0.27 per share. The company continues to focus on expanding its U.S. manufacturing capabilities amidst potential tariff impacts. These recent developments highlight ongoing strategic maneuvers and financial activities within these companies, reflecting their responses to market conditions and operational challenges.
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