Enterprise Products Partners LP (EPD)

[ranchhand71]

Argus $24 target

• Raising price target to $24
• On February 3, EPD reported adjusted 4Q20 net income attributable to limited partners of $967
million or $0.43 per diluted unit, down from $1.125 billion or $0.50 per unit in 4Q19.
• The lower earnings reflected lower gross margins in natural gas gathering, processing and
marketing, and weakness in refined products-related businesses.
• We are raising our 2021 EPS estimate to $2.00 from $1.98 based on our expectations for slightly
higher volume growth as the pandemic recedes. The current consensus is $2.00.
INVESTMENT THESIS
We are reiterating our BUY rating on Enterprise Products Partners LP (NYSE: EPD)
and raising our price target to $24 from $20. We believe that the company will continue to
benefit from its substantial asset base along the Gulf Coast as well as from projects slated
to enter service over the next three years. We expect these projects and existing assets to
support future distribution growth. The stock also carries an attractive dividend with a
yield of about 8.6%