Citi Raises PT On EPD To $48.50
Citi has raised its price target on Enterprise Product Partners (NYSE: EPD) from $48 to $48.50 as it maintains its Buy rating on the stock.
According to Citi, “Adj. EBITDA (excl. $18.4 mill. asset sales gain) of $870 mill. was ~ 2.2 % ahead of our est. and 5.9% ahead of consensus. DCF (incl. $84.2 mill. from asset sales) was $694 mill., ~ 20% ahead of our est. EPD had a solid coverage of 1.44x allowing distribution increase to $0.5975/unit ($2.39/unit annualized) up 5.3% y-o-y. The beat was mainly from the NGL segment while Refined products under-performed… EPD has beefed up its portfolio of growth projects just within the last two weeks as it has announced four new or expanded investment opportunities that leverage its existing assets. We are now projecting total growth capital spending of $5.5 billion in 2011 & 2012 (previously $4.9 billion). While we believe our estimates are low, mgmt maintained its $5 billion project guidance and we believe this is likely to be revised higher.”
EPD closed yesterday at $41.49.
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