Oil prices are surging again as the new week kicks off. WTI crude is hovering around $103, up 7%, while Brent has pushed to ~$102, also gaining 7%. The spike comes as geopolitical tensions flare once again, after President Trump announced a U.S. blockade of the Strait of Hormuz following the collapse of weekend talks with Iran. Given the Strait’s role as a vital chokepoint for global oil shipments – and Iran’s grip over it – the market reaction has been swift and decisive.
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That backdrop is lifting energy stocks across the board, and Enterprise Products Partners (EPD) is riding the wave. The midstream player is up 17% year-to-date, and Mizuho’s Gabe Moreen – a top 1% ranked analyst – still sees more fuel in the tank.
Moreen assigns EPD an Outperform (i.e., Buy) rating, backed by a Street-high price target of $44, suggesting the stock will gain another 17% over the one-year timeframe. (To watch Moreen’s track record, click here)
With the company recently guiding for 2027 adjusted EBITDA growth “in the neighborhood of” double digits, Moreen sees the outlook as firmly intact. The top analyst now expects an “overlay of better than expected near term performance given energy market developments from geopolitical disruptions.”
While Enterprise Products Partners carries some exposure to commodity prices, its asset base has consistently delivered solid gains from marketing activities. Moreen expects the company’s crude oil and LPG marketing and export operations to capitalize on near-term margin opportunities. In addition, its strong balance sheet and evolving capital allocation strategy continue to stand out, particularly as growth capex is expected to peak around 2027.
After reporting 4Q25 results, EPD presented a relatively muted outlook for 2026, indicating EBITDA growth below Street expectations, followed by the aforementioned ~double-digit growth in 2027. The analyst’s 2026 forecast is more optimistic than management’s guidance, as Moreen forecasts around 6% adj. EBITDA growth compared to the company’s ~3%. Looking ahead to 2027, Moreen still anticipates a “meaningful acceleration” as large-scale organic projects come online, but he no longer assumes double-digit growth. Instead, he models about 6% adj. EBITDA growth, reflecting a higher base in 2026 rather than any deterioration in fundamentals, with growth “still inclining into 2027.”
So, that’s the Mizuho view, but what does the rest of the Street have in mind for this energy stock? Based on a mix of 6 Buys and Holds, each, plus 2 Sells, the analyst consensus rates the stock a Moderate Buy. At $38.79, the average price target points toward modest gains of ~3% in the months ahead. (See EPD stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.