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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.

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.

While we acknowledge the risk and potential of EPD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EPD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Dow 20 Stocks List: Ranked By Hedge Fund Bullishness Index and 10 Unstoppable Dividend Stocks to Buy Now.

Disclosure. None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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