In a report released yesterday, Jean Ann Salisbury from Bank of America Securities reiterated a Buy rating on Energy Transfer, with a price target of $23.00.
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Jean Ann Salisbury’s rating is based on Energy Transfer’s strategic move to expand its Transwestern pipeline to Arizona, which is a significant project involving 516 miles of pipeline and a capacity of 1.5 billion cubic feet per day, potentially expandable to over 2 billion. This project, with a cost of $5.3 billion, is expected to be operational by the fourth quarter of 2029 and is seen as a positive development for Energy Transfer as it adds a high-quality asset to their portfolio.
Additionally, the project is likely to enhance Energy Transfer’s market position as it trades at a lower multiple compared to its competitor, KMI, and is expected to positively impact their financials by adding a contracted project to their backlog. The willingness of end-users to pay significantly more for new pipeline capacity suggests a favorable market environment for Energy Transfer’s expansion efforts, which supports the Buy rating given by Jean Ann Salisbury.
Ann Salisbury covers the Energy sector, focusing on stocks such as Chevron, DT Midstream, and Occidental Petroleum. According to TipRanks, Ann Salisbury has an average return of 8.6% and a 56.86% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $25.00 price target.