In a report released today, Jason Gabelman from TD Cowen maintained a Hold rating on Enterprise Products Partners, with a price target of $33.00.
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Jason Gabelman has given his Hold rating due to a combination of factors related to Enterprise Products Partners’ financial outlook and strategic plans. One of the primary reasons is the lack of firm guidance on stock buybacks for 2026, which some investors were anticipating. The company has indicated that its capital expenditure for 2026 might increase to $2.7 billion, although it will not reach $3 billion, suggesting a cautious approach to spending.
Additionally, while there is an expectation of a significant inflection in free cash flow by late 2026 or early 2027, the timing of increased stock repurchases remains uncertain. The company’s leverage is expected to return to target levels by the end of 2026, supported by contributions from ongoing projects. However, the forecasted EBITDA for 2026 is slightly below consensus, and the cash available after distributions is limited, which could constrain the extent of buybacks. These factors collectively contribute to the Hold rating.
In another report released on November 3, Wells Fargo also maintained a Hold rating on the stock with a $36.00 price target.