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On Wednesday, Stifel analysts increased the price target for Energy Transfer (NYSE:ET) shares to $23.00, up from the previous $23.00, while reiterating a Buy rating on the stock. With a current market capitalization of $67.8 billion and trading at a P/E ratio of 14.5, InvestingPro analysis suggests the stock is fairly valued. The firm’s analysts highlighted Energy Transfer’s strong project pipeline and its recent foray into supplying natural gas to data centers as key growth drivers.
Energy Transfer has been actively pursuing several large-scale projects, which are expected to contribute to the company’s growth in 2026 and beyond. The company’s impressive performance, including a 51.5% return over the past year and 31.9% over the last six months, along with a substantial dividend yield of 6.56%, supports this strategic focus on expansion and Stifel’s favorable outlook.
On Tuesday, Energy Transfer made a significant announcement, revealing its first-ever natural gas supply contract with Cloudburst for approximately 450 million cubic feet per day (MMcf/d). This contract will serve a Texas data center and is considered a pioneering agreement within the midstream sector, marking its entry into the data center supply space.
The company’s announcement today further elaborated on the opportunities this new venture presents. Analysts at Stifel believe that this development is likely to be well-received by investors, given the potential for Energy Transfer to tap into the growing demand for energy within the data center industry.
Energy Transfer’s stock is poised to benefit from these recent developments as the company continues to diversify its services and explore new market opportunities. The increase in the price target reflects Stifel’s confidence in the company’s strategic direction and its ability to execute on its growth initiatives.
In other recent news, Energy Transfer LP reported its Q4 results, which fell short of analyst estimates. The company’s adjusted earnings per share were $0.29, underperforming the predicted $0.37, and revenue was $19.54 billion, lower than the anticipated $21.68 billion. Despite these results, Energy Transfer recorded record financial and operating results for the full year 2024, with a net income of $874 million and adjusted EBITDA of $1.56 billion.
The company also provided its outlook for 2025, projecting an adjusted EBITDA between $16.1 billion and $16.5 billion, with expected growth and maintenance capital expenditures of approximately $5.0 billion and $1.1 billion respectively. Energy Transfer announced an increase to its quarterly distribution, targeting a growth rate of at least 5% for 2025.
The Q4 results were affected by lower volumes in its fuel distribution segment, but this was partially offset by contributions from newly acquired pipeline and terminal assets. These are among the recent developments for Energy Transfer.
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