Investing.com - Goldman Sachs lowered its price target on Enterprise Products Partners (NYSE:EPD) to $38 from $39 while maintaining a Neutral rating on the stock. The Wall Street consensus stands at $42, while InvestingPro analysis suggests the stock is undervalued at current levels, with Fair Value indicating potential upside.
The firm raised its second-quarter 2026 EBITDA estimate for Enterprise Products to $2,782 million from a prior $2,709 million, representing a 3% increase. The revised estimate stands 4% above FactSet consensus of $2,674 million.
Goldman Sachs expects tailwinds similar to the first-quarter 2026 beat, specifically from NGL marketing and exports and Waha differential capture. Sequential gains should include modestly better Permian volumes and the completion of octane enhancement maintenance, though delayed.
The firm raised its full-year 2026 EBITDA estimate to $10,925 million from $10,797 million previously, a 1% increase and 2% above consensus of $10,749 million. The increase largely reflects the second-quarter step-up.
Goldman Sachs raised its 2027 EBITDA estimate to approximately $11.4 billion from $11.2 billion previously, above implicit guidance and current consensus of approximately $11.3 billion. The increase reflects a higher Permian gas production forecast.The company’s appeal to income investors remains strong, with a current dividend yield of 6.04%. According to InvestingPro Tips, Enterprise Products has raised its dividend for 28 consecutive years—a track record that underscores management’s commitment to shareholder returns.
In other recent news, Enterprise Products Partners reported its financial results for the first quarter of 2026. The company experienced a mixed performance, missing its earnings per share (EPS) forecast but surpassing revenue expectations. Despite the shortfall in EPS, the market responded positively. Additionally, Raymond James raised its price target for Enterprise Products Partners to $42 from $40, maintaining an Outperform rating. The firm highlighted the company’s strong system integration, balance sheet strength, and disciplined return on invested capital. Raymond James considers Enterprise Products Partners a high-quality large-cap midstream franchise. These developments reflect the company’s ongoing performance and market perception.
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