UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Energy Transfer Equity
In a report published Friday, Deutsche Bank reiterated its Buy rating on Energy Transfer Equity (NYSE: ETE), and raised its price target from $45.00 to $52.00.
Deutsche Bank noted, “Our $52 target price for ETE is based on the dividend discount model combined with the target distribution yield of 5.0%. We revise our distribution forecast based on Holding Co formation to $2.60 per unit in 2013, retaining 2012E distribution at $2.50 per unit. We revise our near-term growth rate to 7%, normalized to a terminal growth rate of 2% over the next five years. We use a cost of equity of 8.1% as our discount rate.”
Energy Transfer Equity closed on Thursday at $45.03.
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