Mizuho Securities analyst Gabe Moreen has maintained their bullish stance on ET stock, giving a Buy rating yesterday.
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Gabe Moreen has given his Buy rating due to a combination of factors that highlight Energy Transfer’s strategic growth and potential for significant returns. The company’s FY25 growth capital expenditure is projected at $5 billion, which is notably higher than past expectations. This substantial investment is focused on projects within their core areas of expertise, such as pipeline enhancements and NGL export and storage, which are expected to deliver solid returns and align with investor interests.
Moreen also notes that while the initial adjusted EBITDA guidance for FY25 slightly missed expectations, there is potential for earnings improvement as Energy Transfer continues to optimize operations and bring new projects online. The robust growth capex plan suggests promising earnings growth beyond FY25, particularly as many projects are anticipated to commence operations in late 2025 or 2026, thereby supporting a positive long-term outlook for the company.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $23.00 price target.