Energy Transfer LP (NYSE:ET) is one of the best cheap stocks under $50 to buy now. On July 7, Energy Transfer LP (NYSE:ET) was initiated with a new Buy rating by TD Cowen analyst Jason Gabelman, setting a price target of $22.
The analyst based the rating on the company’s considerable involvement in the natural gas sector and its diversified operations.
An aerial view of an oil rig at sunrise, emphasizing the power of the natural gas transportation industry.
He reasoned that Energy Transfer LP (NYSE:ET) generates a considerable portion of its earnings from natural gas, which positions it well to capitalize on sector growth. The firm considers the company’s current valuation to be attractive, despite some accounting complexities, due to its publicly traded subsidiaries.
Gabelman further stated that Energy Transfer LP (NYSE:ET) has a strong presence in key natural gas basins in the US, which increases its potential and connectivity to benefit from rising natural gas demand.
He expects Energy Transfer LP (NYSE:ET) to experience EBITDA growth as well, supported by projects such as the Hugh Brinson pipeline. Future projects may also drive growth for the company, including data center-related supply initiatives and Lake Charles LNG.
Energy Transfer LP (NYSE:ET) offers natural gas pipeline transmission and transportation services. The company operates through the following segments: Intrastate Transportation and Storage, Interstate Transportation and Storage, Midstream, NGL and Refined Products Transportation and Services, Crude Oil Transportation and Services, Investment in Sunoco LP, Investment in USAC, and All Other.
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Disclosure: None. This article is originally published at Insider Monkey.
