Goldman Sachs and Scotiabank Lift Price Targets for Enterprise Products Partners

Goldman Sachs has raised its price target for Enterprise Products Partners (EPD) to $39 from $37, while maintaining a Neutral rating on the midstream energy provider. The upgrade, issued on May 14, follows stronger-than-expected quarterly results and robust performance in the company’s gas marketing segment.

Separately, Scotiabank increased its price goal for the same stock to $40 from $39 on May 12, keeping a Sector Perform rating. Scotiabank analyst Brandon Bingham noted that the first-quarter reporting season demonstrated the ability of midstream companies to generate outsized earnings even during periods of market turbulence and disruption.

Analysts at Goldman Sachs highlighted constructive long-term commentary regarding US energy export demand and global supply dynamics. The research note indicated that investors are currently weighing the company’s previously conservative guidance against potential upside from future optimization efforts and macro-driven pricing improvements.

The firm also pointed to geopolitical support for pricing as a factor in its assessment. However, the source material does not specify the exact geopolitical factors or macroeconomic indicators influencing these prices, nor does it quantify the extent to which future optimization efforts will impact earnings.

Enterprise Products Partners provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products, and petrochemicals. The company currently offers an annual dividend yield of 5.61%, a metric that has placed it among lists of high-yield dividend stocks with growing cash flows.