Enterprise Products Partners (NYSE:EPD) – This partnership is an integrated provider of natural gas and services, including processing, fractionation, transportation and terminalling.
Argus upgraded the stock from a “hold” to a “buy” on Feb. 16. Of the analysts covering EPD, 11 recommend it as a “strong buy,” eight are a “buy,” and three are a “hold.”
Before the recent increase in the price of crude oil, now at $105 per barrel, S&P estimated earnings of $2.38 for 2011, versus $1.15 in 2012, and a price target of $59. It has a “strong buy” on the stock, but the recent increase in crude could result in an upward revision of both earnings and price target.
Another strong reason to buy EPD is its high dividend, which is currently at $2.48, for a dividend yield of 4.74%.
Technically EPD broke from a long sideways trend in October, consolidated, and then broke higher again in January. The technical target for a short-term trade is $58, but EPD is “stair-stepping,” which normally results in a longer-term advance. The stock could reach $75. Buy at market or on a pullback under $50.
