UBS Maintains Buy Rating on Enterprise Products Partners (EPD)

Enterprise Products Partners L.P. (NYSE:EPD) is one of the best high growth stocks. On June 23, UBS reiterated a Buy rating on EPD with a $40 price target. UBS has revised its Q2 2025 EBITDA forecast for Enterprise Products slightly downward from $2,516 million to $2,420 million. This adjustment reflects a combination of factors, including weaker MTBE-RBOB spreads, unplanned operational downtime at PDH1, seasonal declines in propane and natural gas demand, and a reduction in ethane exports to China.

Despite this modest downgrade, EPD continues to be viewed as a resilient income-generating asset, supported by a stable dividend yield and a consistent dividend growth for 27 consecutive years.

UBS forecasts a slight decline in the operating margin for the NGL Pipeline & Services segment in the second quarter of 2025, projecting $1,403 million compared to $1,418 million in the prior quarter. Despite this decline, the segment is expected to experience improved performance in the second half of the year, supported by the commissioning of two new gas processing plants, each potentially contributing an additional 40,000 to 50,000 barrels per day to natural gas liquids (NGL) volumes.

UBS Maintains Buy Rating on Enterprise Products Partners (EPD)

Aerial view of a refinery tower surrounded by the sprawling landscape of pipelines in an oil & gas midstream facility.

UBS anticipates an operating margin of $385 million for the Crude Pipeline & Services segment in the second quarter, reflecting a marginal increase from $374 million in the previous quarter. While earnings are believed to be nearing their cyclical lows, the firm expects current operational hindrances to persist through year-end, with a more pronounced earnings rebound projected in 2026.

The firm also expects a slight decline in Q2 operating margins, with Natural Gas Pipeline & Services at $354 million, down from $357 million, and Petrochemical & Refined Products at $312 million, down from $315 million, indicating stable but slightly weaker performance.

Enterprise Products Partners L.P. (NYSE:EPD) is a midstream energy company with an integrated infrastructure portfolio including pipelines, processing and fractionation facilities, storage assets, marine terminals, and marketing operations.

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