Analysts at RBC Capital updated their estimates and raised their price target on Energy Transfer LP (NYSE:ET) to $14 from $9, following the acquisition of Enable Midstream, completed on December 2, 2021.

The analysts view the acquisition favorably given the complementary asset bases, synergy potential, positive impact on credit metrics, and increase in fee-based cash flow that it provides.

The company anticipates the acquisition to generate $100 million of cost and efficiency synergies, which the analysts view as achievable given the complementary asset bases.

According to the analysts, the company offers investors a compelling value proposition, given its expansive asset footprint across the hydrocarbon value chain, strengthening the balance sheet, and free cash flow generation.