Energy Transfer LP (ET)

[Zexcaliber]

"Pipelines are not the market's favorite pick right now and won't be in the future either. ESG and negative political headwinds will plague the market for the foreseeable future.

But, sometimes, negative market sentiment can hide a good turnaround candidate, and I believe that's the case now with ET. Having had an enormously good Q1, thanks to Uri, ET is in a much better place now than it was just at the first of the year. There is virtually no doubt that ET will maintain its investment-grade credit rating, and there is a strong likelihood it will begin raising its distribution sometime early next year barring a negative outcome with DAPL. But DAPL is, of course, looming large in the meantime.

My recommendation is to buy ET with a price potential of $15 before the DAPL decision next March and $20 by the end of 2022 if the DAPL decision is positive for ET. ET could easily hit $25 by 2025. You could hedge your position by buying puts as the DAPL decision approaches."