Energy Transfer Sees $1 Cut to Price Target, Raises Distribution by 3%
On January 28, RBC Capital cut its price target on Energy Transfer from $22 to $21 while keeping an Outperform rating, citing underperformance in natural-gas–focused names. On January 27, Energy Transfer boosted its quarterly cash distribution to $0.335 per unit, a 3% year-over-year increase, payable February 19 to holders of record on February 6.
1. RBC Capital Lowers Price Target
RBC Capital reviewed the U.S. midstream sector and noted that natural-gas–centric stocks lag behind peers tied to AI trends. As a result, it trimmed its Energy Transfer price target from $22 to $21 on January 28, maintaining an Outperform rating based on confidence in long-term gas demand.
2. Morgan Stanley Maintains Hold Rating
On the same day, Morgan Stanley reiterated a Hold rating on Energy Transfer with an unchanged $19 price target. The firm highlighted balanced risks and rewards at current levels, citing flat commodity outlooks and steady fee-based revenues.
3. Quarterly Distribution Increased
For Q4 2025, Energy Transfer declared a cash distribution of $0.335 per unit, up 3% from the prior year’s quarter. Unitholders of record as of February 6 will receive the payment on February 19, underpinning the partnership’s commitment to steady yield growth.