Enterprise Products Partners L.P.(US:EPD) 智通财经网·2026-01-15 07:06Core Viewpoint - Wolfe Research downgraded the rating of midstream energy company Enterprise Products Partners (EPD.US) from "in line with peers" to "underperform" with a target price of $31, citing weak performance expectations for 2025 despite recent strong stock price movements [1] Group 1: Company Performance - The company's performance in 2025 is expected to be weak, which contrasts with its recent stock price rally, leading to a valuation that is significantly higher than its peers [1] - Analyst Keith Stanley noted that Enterprise Products no longer has the justification for a valuation premium over midstream energy limited partnerships (MLPs) due to diminished competitive advantages and a similar balance sheet status compared to most peers [1] Group 2: Market Conditions - The core growth business in the Permian Basin for natural gas and condensate is facing intense market competition, with increasing risks of industry overcapacity [1] - Stanley expressed cautious optimism regarding the eventual recovery of the oil market in 2026 and the alleviation of transportation bottlenecks in the Permian Basin, which could benefit related stocks [2] Group 3: Management and Investor Sentiment - The company's conservative capital allocation strategy has led to market expectations for an increase in the stock buyback program this year, which may ultimately disappoint investors [2] - Following the significant stock price increase in 2025, the potential for further price appreciation for Enterprise Products is considered limited compared to peer companies [2]