Spectra Energy Partners, LP (NYSE:SEP) was downgraded by investment analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a note issued to investors on Wednesday, Analyst Ratings News reports. They currently have a $42.00 price target on the stock. Morgan Stanley’s target price indicates a potential downside of 8.00% from the company’s current price.
The analysts wrote, “Revaluation of the reconfigured SEP is now more complete. With units up 17% since mid-June (relative to a 3% gain the AMZ), SEP now trades at a 4.5% yield and 19.3x 2014e P/DCF (MSe medians of 5.7% / 15.2x), largely reflecting the scale and organic growth potential of the dropdown of U.S. Transmission and Storage assets announced from general partner SE. We see 11.5% distribution growth in 2014e and 7.0% in 2015e driven by an attractive $8b backlog of attractive organic projects, reflecting a blue-chip gas pipeline asset base, and larger footprint. However, challenges of a higher general partner burden on growth (SE will receive ~22% of all cash paid from SEP in 2014e; currently in the 50% high splits) may drag on SEP’s potential at its current value to perform. Our $42 price target implies -4% one-year total return potential.”
Spectra Energy Partners, LP (NYSE:SEP) traded down 1.53% during mid-day trading on Wednesday, hitting $44.95. The stock had a trading volume of 27,299 shares. Spectra Energy Partners, LP has a one year low of $27.15 and a one year high of $47.73. The stock’s 50-day moving average is $42.6 and its 200-day moving average is $40.35. The company has a market cap of $4.891 billion and a P/E ratio of 28.34.
Spectra Energy Partners, LP (NYSE:SEP) last released its earnings data on Tuesday, August 6th. The company reported $0.36 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.37 by $0.01. The company had revenue of $56.90 million for the quarter, compared to the consensus estimate of $58.35 million. During the same quarter in the prior year, the company posted $0.42 earnings per share. The company’s quarterly revenue was down 3.1% on a year-over-year basis. Analysts expect that Spectra Energy Partners, LP will post $1.52 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, November 14th. Investors of record on Thursday, October 31st will be paid a dividend of $0.52 per share. This represents a $2.07 annualized dividend and a dividend yield of 4.52%. The ex-dividend date is Tuesday, October 29th. This is an increase from Spectra Energy Partners, LP’s previous quarterly dividend of $0.51.
A number of other analysts have also recently weighed in on SEP. Analysts at Deutsche Bank raised their price target on shares of Spectra Energy Partners, LP from $40.00 to $42.00 in a research note to investors on Tuesday, October 8th. They now have a “buy” rating on the stock. Separately, analysts at Barclays reiterated a “hold” rating on shares of Spectra Energy Partners, LP in a research note to investors on Wednesday, September 11th. They now have a $35.00 price target on the stock. Finally, analysts at Scotiabank cut their price target on shares of Spectra Energy Partners, LP from $35.00 to $34.00 in a research note to investors on Wednesday, September 11th. One research analyst has rated the stock with a sell rating, six have given a hold rating and two have given a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $41.15.
Spectra Energy Partners, LP (NYSE:SEP), through its subsidiaries, is engaged in the transportation and gathering of natural gas through interstate pipeline systems.
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