NEW YORK (TheStreet) -- UBS increased its price target on Enterprise Product Partners (EPD) to $84 and set a "buy" rating. The firm said the move reflects higher distribution forecasts and model changes to growth rate and Beta.
The stock was up 0.35% to $77.77 at 9:36 a.m. on Friday.
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Separately, TheStreet Ratings team rates ENTERPRISE PRODS PRTNRS -LP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENTERPRISE PRODS PRTNRS -LP (EPD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, growth in earnings per share and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 6.0% when compared to the same quarter one year prior, going from $753.50 million to $798.80 million.
- Net operating cash flow has increased to $1,404.10 million or 40.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.51%.
- ENTERPRISE PRODS PRTNRS -LP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ENTERPRISE PRODS PRTNRS -LP increased its bottom line by earning $2.82 versus $2.71 in the prior year. This year, the market expects an improvement in earnings ($3.13 versus $2.82).
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: EPD Ratings Report