Why Units of Energy Transfer Tumbled Nearly 13% in June
Units of Energy Transfer (NYSE: ET) slumped 12.8% in June, according to data provided by S&P Global Market Intelligence. Weighing on the master limited partnership (MLP) were lackluster views put out by some analysts and the bankruptcy filing of a large customer.
Analysts offered mixed opinions about Energy Transfer's future last month. For example, BMO Capital grew more bullish, upgrading its rating on the energy company from market perform to outperform, and calling it the best way to invest in the midstream sector. BMO estimated that the company's value should be closer to $13 per unit (85% higher than the current price). On the other hand, Citi cut its price target on Energy Transfer from $18 to $10 based on its assumption that earnings will be reduced due to the COVID-19 pandemic.
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Source Fool.com
