Energy Transfer (ET) has received a new Buy rating, initiated by TD Cowen analyst, Jason Gabelman.
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Jason Gabelman has given his Buy rating due to a combination of factors, including Energy Transfer’s diversified operations and its significant involvement in the natural gas sector. The company generates a substantial portion of its earnings from natural gas, positioning it well to capitalize on sector growth. Despite some accounting complexities due to its publicly traded subsidiaries, Energy Transfer’s current valuation is considered attractive.
Additionally, the company has a strong presence in key U.S. natural gas basins, which enhances its connectivity and potential to benefit from increased natural gas demand. The anticipated growth in EBITDA, driven by projects like the Hugh Brinson pipeline, further supports the positive outlook. Potential upside from future projects, such as Lake Charles LNG and data center-related supply initiatives, could also contribute to the company’s growth, making it a compelling investment opportunity.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 8.8% and a 59.68% success rate. Gabelman covers the Energy sector, focusing on stocks such as BP, Calumet Specialty Products, and Cheniere Energy.