Energy Transfer downgraded to hold after strong run

Seekingalpha+1 · 5 hours ago
Energy Transfer downgraded to hold after strong run
  • Seeking Alpha downgrades Energy Transfer (ET) to hold, projecting high single-digit total returns from a 6–7% yield and modest 2% annualized appreciation.
  • The author cites 140,000 miles of pipeline and consensus estimates rising from $9.4B (2025) to $14B (2030) as drivers of operating income growth.
  • The author says Energy Transfer's valuation remains historically discounted due to higher leverage, a complex tax structure, and persistent share dilution.
  • Simply Wall St reports a planned US$2.63b acquisition of Vaquero Midstream that adds natural gas gathering and processing capacity.
  • Simply Wall St puts Energy Transfer at about 14.1x earnings and calls the shares undervalued against its fair P/E model.