UPDATE: Wunderlich Securities Increases PT to $46 on Energy Transfer Equity; Distribution Outlook
Wunderlich Securities increases its price target on Hold-rated Energy Transfer Equity (NYSE: ETE) from $38 to $46, reflecting favorable distribution outlook.
Wunderlich Securities notes, "We are increasing our price target on Energy Transfer Equity, L.P. (ETE) units to $46/unit from $38/unit based on a more favorable outlook for distribution growth. The partnership should realize positive benefits from Energy Transfer Partners (ETP-$50.98, Hold) pending acquisition of Sunoco, Inc. (SUN-NR). We estimate distribution growth of 3.5% this year and 9.9% next year. Combining ETE's current yield of 5.8% with our 2012 distribution growth estimate results in a total potential return of 9.3%. At the current levels we believe the units are fully valued, but would continue to hold them for the total return potential."
ETE closed at $42.77 on Tuesday.
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Tags: Wunderlich Securities