Energy Transfer upgraded to Strong Buy, targeting 25% upside and 7.7% yield

Analysts upgraded Energy Transfer to Strong Buy citing a robust 7.7% dividend yield. The company reported a 20% increase in first-quarter EBITDA. Management raised full-year 2026 EBITDA guidance to a range of $18.2 billion to $18.6 billion.

Growth in NGL exports and transportation volumes drove the positive revision. The company committed to a $15 billion capital expenditure pipeline through 2028. These projects should generate between $2.5 billion and $3 billion in additional annual EBITDA once operational.

Increased 2026 CapEx guidance may pressure short-term free cash flow to fund future earnings growth. The analysis sets a price target of $23.84, representing a potential 25% upside.