Analysts are unanimously bullish on Energy Transfer, with all 16 brokerages having a Buy or Strong Buy rating. At a share price of around $13.00, the upside potential based on a median price target of $17.00 is 30.8%. At the high price target of $21.00, the upside potential is 61.5%.
For the fourth quarter, analysts expect the company to post revenue of $21.49 billion, up 4.8% sequentially and by 4.9% year over year. Adjusted EPS are expected to come in at $0.31, down 9.8% sequentially and 34.0% lower year over year. For the full 2023 fiscal year, EPS are forecast at $1.38, down 8.8%, on sales of $87.85 billion, down 2.3%.
The common units trade at 9.3 times expected 2023 EPS, 9.0 times estimated 2024 earnings of $1.43 and 7.8 times estimated 2025 earnings of $1.65 per share. Energy Transfer’s 52-week range is $9.15 to $13.67. The company pays an annual distribution of $1.22 (yield of 9.55%). Total shareholder return for the past year was 22.74%.
Ford
Last week, Ford Motor Co. (NYSE: F) CEO Jim Farley warned Tesla CEO Elon Musk that continuing to cut prices on some Tesla models could commoditize the company’s cars, and then Tesla would lose its pricing premium. Considering that Ford’s electric Mustang sales plummeted in the first quarter, and Ford has already said it will lose $3 billion on its EV business this quarter, Farley is going to need to mind his own business, so to speak.
Ford stock is down more than 10% for the past 12 months, and even its generous dividend yield may not be enough to carry the company if it fails to execute better. Maybe that is what Farley should be thinking about.
Analysts remain mixed on the stock, with 11 of 23 brokerages having a Hold rating and just seven with a Buy or Strong Buy rating. At a share price of around $12.00, the implied gain based on a median price target of $13.00 is 8.3%. At the high price target of $21.00, the upside potential is 75%.
First-quarter revenue is forecast at $37.42 billion, down 10.4% sequentially but up 16.5% year over year. Adjusted EPS are forecast at $0.44, down 14.3% sequentially and up 15.8% year over year. For the full 2023 fiscal year, consensus estimates call for EPS of $1.63, down 13.2%, on sales of $157.1 billion, up 5.5%.
Ford stock trades at 7.3 times expected 2023 EPS, 6.8 times estimated 2024 earnings of $1.75 and 6.5 times estimated 2025 earnings of $1.83 per share. The stock’s 52-week range is $10.61 to $16.68. Ford pays an annual dividend of $0.60 (yield of 5.17%). Total shareholder return for the past year was negative 10.74%.
Originally published at 24/7 Wall St.
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