Enbridge Energy Partners (NYSE:EEP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.
According to Zacks, “Enbridge Energy Partners units underperformed the broader industry in the last year. The partnership’s U.S. L3R Program in Wisconsin and the Canadian L3R Program cost has been revised about 12% above the original estimate at the time the project was approved in 2014. This mainly reflects delays in the regulatory process, changes in scope and route alteration as well as other changes that resulted from the extensive consultation process. Any further delay in starting the project may increase costs, which is detrimental to the partnership’s growth. Additionally, the high capital expenditure required for the ambitious growth plans may reduce cash distribution growth. Moreover, the rise in debt burden and decline in cash balance reflect the weakness in the partnership’s balance sheet.”
A number of other research analysts have also recently commented on the company. Barclays lowered their price target on Enbridge Energy Partners from $21.00 to $16.00 and set an “equal weight” rating on the stock in a report on Monday, November 20th. Bank of America started coverage on Enbridge Energy Partners in a report on Tuesday, January 9th. They issued an “underperform” rating on the stock. Morgan Stanley lowered their price target on Enbridge Energy Partners from $18.00 to $17.00 and set an “equal weight” rating on the stock in a report on Friday, November 17th. Finally, UBS Group reissued a “buy” rating and issued a $14.00 price target (down from $16.50) on shares of Enbridge Energy Partners in a report on Friday, March 2nd. Four investment analysts have rated the stock with a sell rating, seven have issued a hold rating and one has assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $17.00.
Enbridge Energy Partners (NYSE:EEP) last posted its quarterly earnings results on Thursday, February 15th. The pipeline company reported $0.26 EPS for the quarter, topping the Zacks’ consensus estimate of $0.20 by $0.06. Enbridge Energy Partners had a return on equity of 5.68% and a net margin of 9.12%. The company had revenue of $610.00 million for the quarter. analysts anticipate that Enbridge Energy Partners will post 0.74 earnings per share for the current year.
Several institutional investors and hedge funds have recently modified their holdings of the company. Green Square Capital LLC raised its holdings in shares of Enbridge Energy Partners by 7.1% during the 4th quarter. Green Square Capital LLC now owns 119,248 shares of the pipeline company’s stock worth $1,647,000 after acquiring an additional 7,940 shares in the last quarter. OTA Financial Group L.P. raised its holdings in shares of Enbridge Energy Partners by 145.8% during the 4th quarter. OTA Financial Group L.P. now owns 89,803 shares of the pipeline company’s stock worth $1,240,000 after acquiring an additional 53,267 shares in the last quarter. Yorkville Capital Management LLC purchased a new stake in shares of Enbridge Energy Partners during the 4th quarter worth approximately $280,000. Brookfield Asset Management Inc. raised its holdings in shares of Enbridge Energy Partners by 87.6% during the 4th quarter. Brookfield Asset Management Inc. now owns 3,855,987 shares of the pipeline company’s stock worth $53,251,000 after acquiring an additional 1,800,054 shares in the last quarter. Finally, Glenmede Trust Co. NA raised its holdings in shares of Enbridge Energy Partners by 20.9% during the 4th quarter. Glenmede Trust Co. NA now owns 115,920 shares of the pipeline company’s stock worth $1,600,000 after acquiring an additional 20,052 shares in the last quarter. 45.04% of the stock is currently owned by institutional investors and hedge funds.
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About Enbridge Energy Partners
Enbridge Energy Partners, L.P is a geographically and operationally diversified organization that provides crude oil and liquid petroleum gathering and transportation and storage services. The Company operates through the Liquids business segment. Its Liquids segment includes the operations of its Lakehead, North Dakota and mid-continent systems.
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