Energy

Bernstein Wants Clients Buying Several Top MLPs

Jon C. Ogg

Published: May 11, 2016 3:56 pm

Last Updated: January 13, 2020 9:32 am

Wednesday turned out to be a good day for the world of master limited partnerships (MLPs), even if the broader market was lower. One driving force was the lower oil inventories reported by the Department of Energy, but a set of research reports from Bernstein covering some of the top MLPs also drove interest in at least part of the sector.

One issue to consider is that many MLPs were first thought to be immune to oil prices. That notion ultimately proved false, as so many producers have had to abandon projects and as many producers have negotiated costs lower.

24/7 Wall St. wanted to cover some of these main MLP calls with Outperform ratings. We included historical and price target data on each. Also included is the slew of MLP and MLP-like entities that the firm assigned Market Perform ratings.

Enterprise Products Partners

Enterprise Products Partners L.P. (NYSE: EPD) was started as Outperform in Bernstein’s call. It was assigned a $33 price target, compared with a $25.69 prior close. This is considered one of the best MLPs of them all, and the $33 target implied an upside of about 27.5%, before considering its 6% distribution yield.

Enterprise Products has a consensus analyst price target of $31.92 and a 52-week trading range of $19.00 to $34.56. Its units were last seen trading up 1.8% at $26.16 after the call. Merrill Lynch was also recently positive on Enterprise Products.

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