Goldman Sachs analyst John Mackay maintained a Hold rating on Enterprise Products Partners today and set a price target of $33.00.
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John Mackay has given his Hold rating due to a combination of factors influencing Enterprise Products Partners’ performance. The company’s second-quarter adjusted EBITDA was slightly below consensus expectations, with mixed results across its segments. While the natural gas segment exceeded expectations due to marketing and optimization gains, the NGL segment underperformed largely because of lower processing margins.
Despite the challenges, the crude oil and petchems/products segments showed stronger than expected results, driven by higher transportation volumes and better propylene rates, respectively. However, the lack of new major projects and the continuation of softer per-barrel margins contribute to a cautious outlook. The anticipated project-related EBITDA increase in the second half of 2025 and the expected higher free cash flow in 2026 provide some optimism, but the overall quiet release amid macroeconomic volatility supports the Hold rating.
In another report released on July 17, Morgan Stanley also maintained a Hold rating on the stock with a $35.00 price target.