Stock under consideration today: Tallgrass Energy Partners, LP (TEP)

The shares of Tallgrass Energy Partners, LP (NYSE:TEP) currently has mean rating of 1.94 while 6 analysts have recommended the shares as “BUY”, 5 recommended as “OUTPERFORM” and 5 recommended as “HOLD”. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell.

The company’s mean estimate for sales for the current quarter ending Jun 16 is 147.34M by 8 analysts. The means estimate of sales for the year ending Dec-16 is 605.56M by 9 analysts.

The mean price target for the shares of Tallgrass Energy Partners, LP (TEP) is at 52.64 while the highest price target suggested by the analysts is 60.00 and low price target is 46.00. The mean price target is calculated keeping in view the consensus of 14 brokerage firms.

The average estimate of EPS for the current fiscal quarter for Tallgrass Energy Partners, LP (TEP) stands at 0.57 while the EPS for the current year is fixed at 2.25 by 12 analysts.

The next one year’s EPS estimate is set at 3.13 by 13 analysts while a year ago the analysts suggested the company’s EPS at 2.25. The analysts also projected the company’s long-term growth at 26.09% for the upcoming five years.

In its latest quarter ended on 31^st March 2016, Tallgrass Energy Partners, LP (TEP) reported earnings of $0.35. The posted earnings missed the analyst’s consensus by $-0.18 with the surprise factor of -34.00%. In the matter of earnings surprises, the term “Cockroach Effect” is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

On May 17, 2016 Tallgrass Energy Partners, LP (TEP) and Tallgrass Energy GP, LP (TEGP) (“TEGP”), collectively referred to as Tallgrass Energy, announced updated guidance for fiscal year 2016 as a result of TEP’s recent acquisition of a 25 percent membership interest in Rockies Express Pipeline LLC.

TEP expects distributable cash flow of $345 – $375 million and distribution coverage of 1.15 – 1.20x, for the year ended December 31, 2016. TEP also expects to grow its annualized distribution for 2016 by approximately 27 – 30 percent. Additionally, TEP expects a minimum average compounded annualized distribution growth rate of at least 20 percent for 2017 and 2018.