Wall Street Maintains a Positive Outlook on Energy Transfer LP (ET), Here's Why

Energy Transfer LP (NYSE:ET) is one of the Best Affordable Stocks to Buy According to Analysts. Wall Street maintains a positive outlook on the stock, with analysts’ 12 month price target reflecting more than 34% upside from the current level. Recently, on December 23, Robert Kad from Morgan Stanley reiterated a Hold rating on the stock with a $19 price target. Earlier on December 19, Brandon Bingham from Scotiabank reiterated a Buy rating on Energy Transfer LP (NYSE:ET) but lowered the price target from $23 to $21.

The ratings follow the company’s December 18 announcement to suspend development at its Lake Charles LNG project. Management noted that they are suspending the development to allocate capital toward higher-return natural gas pipeline projects, which offers a better risk/return situation. Moreover, the management also highlighted that the continued development of the project is not warranted, and the company remains open to discussion with third parties interested in developing the project.

That said, Kad of Morgan Stanley noted that the reduced price target reflects the lack of catalysts for Energy Transfer LP (NYSE:ET) to re-rate the target. He added that he does not see any near-term events that can narrow the valuation discount with the company’s peers; he believes that share outperformance will be tough.

Energy Transfer LP (NYSE:ET) offers natural gas pipeline transmission and transportation services.

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Disclosure: None. This article is originally published at Insider Monkey.