Enterprise Products (EPD) Downgraded at Raymond James as Midstream Focus Shifts to Execution

Enterprise Products Partners L.P. (NYSE:EPD) is included among the 13 Best Dividend Stocks Paying Over 6%.

On January 5, Raymond James downgraded Enterprise Products Partners L.P. (NYSE:EPD) to Outperform from Strong Buy, while keeping its price target unchanged at $36. The move was part of a broader reset in the midstream supplier group heading into 2026. The firm said midstream is entering 2026 with momentum. But after what it described as “constructive” share performance in 2025, expectations are higher now. In Raymond James’ view, “the real work now shifts to execution.” Investors are paying closer attention to which companies can turn supportive macro conditions into actual cash flow, and not just strong narratives.

Enterprise Products Partners L.P. (NYSE:EPD) stands out on the cash flow side. The partnership generates steady, predictable cash that supports a large distribution. Over the past 12 months, distributable cash flow covered the distribution by 1.7x. That is the kind of cushion income-focused investors look for, since it gives the company room to absorb volatility before the payout would come under pressure.

The balance sheet adds another layer of stability. The company has an investment-grade credit profile, which gives it flexibility if markets tighten or operations face a short-term bump. It can rely on financial strength rather than being forced into tough choices like cutting its distribution. That conservative approach has shown up in the track record. Enterprise has increased its distribution for 27 straight years. That run includes difficult periods for energy markets, including two major sector downturns, the Great Recession, and the COVID-19 shock.

Enterprise Products Partners L.P. (NYSE:EPD) is a midstream energy services provider, handling the transportation, processing, storage, and related services for natural gas, NGLs, crude oil, refined products, and petrochemicals across the value chain.

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Disclosure: None.