High-Yield MLPs Rise After Market Rally, Analysts Bullish on Select Players (EPD, ETP, MMP)

Tickerspy’s MLPs Index

MLPS INVESTING IDEAS

• Popular long ideas: KMP, EPD, LINE
• Popular short ideas: TNH, LINE, KMP
• Top dividend plays: RNO, NMM, QRE
• Pro favorites: EPD, PAA, KMI

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MLPS COVERAGE

Typically high-yielding companies that employ a Master Limited Partnership operating structure

• MLPs Jump As Cramer Remains Bullish On Enterprise Products (EPD, XTEX, EEP, ETP, KMP, OKS, CLMT, TNH)
• Plenty Of MLPs Put Under Morgan Stanley's Microscope (MMP, TCLP, NGLS, KMP, SEP, DPM, NS, NSH, ETP, CHKM)
• MLPs Move Higher Despite Shaky Earnings Reports (BBEP, ENP, EVEP, NGLS, EPD, KMP, GMLP)

MLPS CHART

MLPS METRICS

Avg. Market Cap:	$5.8B
Avg. P/E Ratio:	33.9
Avg. Div Yield:	6.7%

Known for their oversized distributions, master limited partnerships (MLPs) jumped yesterday as the broader market staged a big upside rally. Analysts at Oppenheimer & Co brought MLPs into focus last week, when they initiated coverage on several of these high-yielding entities.

As a whole, the MLPs Index moved nearly 2% higher for the week ended Wednesday. The Index is consistently one of the highest yielding on tickerspy, currently paying 6.7% based on current values and distributions over the last year.

On August 24, Oppenheimer & Co issued an Outperform rating to Enterprise Products Partners (EPD), setting a price target for the firm at $43. However, shares of the MLP rose less than the Index average for the week ended Wednesday. Meanwhile, analysts initiated Energy Transfer Partners (ETP) with a Perform rating on the same day. The natural gas pipeline player has climbed 2% since the new rating and continues to be a Pro favorite in the space. A total of 18 Pro investors counted Energy Transfer Partners in their top-15 U.S.-listed equity holdings at the start of Q3, giving them nearly 8% in annual distributions.

Magellan Midstream Partners (MMP), which yields 6% based on its last distribution, was assigned an Outperform rating by Oppenheimer. Though the stock actually fell fractionally over the past five trading days, analysts think there is much more potential upside, setting price target of $56 to the firm.

It will be interesting to see if analysts will be on the mark and how the sector will perform from here. As of this writing, the MLPs Index is one of the top-10 tickerspy Indexes ranked by yield.

Tags: EPD, ETP, MMP