Energy Transfer: Less Attractive For Fresh Buyers (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Energy Transfer has outperformed the S&P 500 since my last 'Buy' upgrade on the security. However, I am now downgrading my stance to a 'Neutral/Hold':
• Operating performance continues to be stable and healthy, especially in the crude oil pipelines business.
• ET's acquisition of WTG Midstream is at a good price, and I am optimistic about management's ability to make more reasonable midstream M&A deals.
• Valuation discounts have shrunk since my last update in January 2024; today, Energy Transfer trades closer to its long-term median valuation multiples.
• Relative technical analysis vs the S&P 500 suggests increased chances of sideways movement followed by a breakdown.

Read the full article here.