Enterprise Products Partners: Mixed Q1 Performance and Stable Growth Outlook Lead to Hold Rating

Analyst Michael Blum from Wells Fargo maintained a Hold rating on Enterprise Products Partners (EPD – Research Report) and keeping the price target at $36.00.

Michael Blum has given his Hold rating due to a combination of factors affecting Enterprise Products Partners. The company’s Q1 EBITDA was slightly below consensus expectations, although it aligned with Wells Fargo’s estimates. While there were strong performances in the Natural Gas Pipelines & Services segment, these were counterbalanced by weaker results in other areas such as NGL Pipelines & Services, Crude Oil Pipelines & Services, and Petchem & Refined Products Services.
Additionally, the company’s free cash flow per unit exceeded expectations, but the overall free cash flow after distributions was negative. Despite the higher-than-expected stock buybacks, the reaffirmation of the 2025/2026 capital expenditure guidance suggests a stable but not overly aggressive growth outlook. These mixed results and reaffirmed guidance contribute to the Hold rating, indicating a neutral stance on the stock’s near-term performance.

According to TipRanks, Blum is a 5-star analyst with an average return of 8.8% and a 61.98% success rate. Blum covers the Energy sector, focusing on stocks such as Venture Global, Inc. Class A, Enterprise Products Partners, and Genesis Energy.