2024-04-14 07:27:06 ET
Summary
- Since I published my bull thesis on Energy Transfer early this year, the stock has delivered ~ 14% in total returns.
- This might raise the question of decreased attractiveness and at least partially exhausted upside.
- Looking at the underlying fundamentals, there is a strong evidence that ET has still the necessary characteristics to deliver juicy returns going forward.
- Also, a P/E of 10x coupled with sector-level tailwinds support this.
- In this article, I elaborate on the key items of Q4 2023 results and other recent ET related dynamics, providing a justified basis on my bullish stance on ET stock.
Early this year I wrote an article about Energy Transfer ( ET ) providing several arguments why, in my view, the then-current dividend yield of 9.1% was fully backed by robust fundamentals and in general why the probability of experiencing a similar event as in 2020, when ET cut the dividend, is extremely unlikely. So, the combination of a very enticing dividend and improving cash generation warranted a buy from me....
Read the full article on Seeking Alpha
For further details see:
Energy Transfer: Why There Is Still A Decent Upside