Stock Price & Analysis

Based on the current market data and analyst insights, WES stock shows mixed signals. The stock is currently trading at $40.57, slightly above its 20-day moving average of $41.34, with an RSI of 48.71 indicating neutral momentum. Recent analyst consensus maintains a Hold rating with an average price target of $40.17, suggesting limited upside potential from current levels.

The stock appears to be trading near its Fibonacci resistance level of $42.64, with support at $39.88. Bill Gross, a notable investor, has recently expressed cooling enthusiasm for MLPs like WES, though he still favors them for their attractive yields, suggesting investors should hold if comfortable with the 8.7% yield but consider selling if overexposed.

Sell WES if seeking short-term gains, as technical indicators and analyst sentiment suggest limited upside potential; however, hold if prioritizing stable income through its attractive dividend yield.

Based on the provided data and market analysis, here is the price prediction for WES stock in 2025:

Western Midstream Partners (WES) is expected to reach $44-45 by end of 2025, representing about 8-10% upside from current price of $40.57. This projection is supported by several key factors:

1. Strong analyst consensus with price targets ranging from $39-45, coupled with improving operational metrics and growth in key financial metrics like free cash flow and adjusted EBITDA.

2. The company's strategic positioning in natural gas infrastructure and ongoing expansion projects positions it well to capitalize on increasing demand for natural gas, particularly from AI data centers and manufacturing growth.

3. While Bill Gross recently suggested some cooling in MLP enthusiasm, he still favors WES specifically due to its attractive 8.7% yield and growth potential driven by infrastructure expansion.

The S1 support level for WES Stock is $39.88 ,The R1 resistant level for WES Stock is $42.64.

As of the end of day on 2025-02-11, the price of WES Stock was $39.89.

The target price for WES Stock according to analyst rating is 40.17, with the highest price target at 44.00 and the lowest at 37.00. Analysts have a Hold rating on WES Stock overall.

The market cap of WES is $15.4B.

Based on the provided data, here's a comprehensive analysis of WES's valuation:

Valuation Analysis WES currently shows a P/E ratio of 9.8x in Q3 2024, which is significantly below its industry average of 23.32x, suggesting potential undervaluation from an earnings perspective.

Financial Performance The company's revenue has remained relatively stable across 2024, ranging between $883-905 million quarterly. However, net income has shown a declining trend from $559.5M in Q1 to $281.7M in Q3 2024, indicating some pressure on profitability.

Analyst Sentiment Recent analyst actions show a cautious stance. Morgan Stanley downgraded WES to Sell in October 2024, while RBC Capital maintains a Hold rating with a $41 price target. The consensus among analysts leans toward a Hold rating.

Key Metrics Assessment

• Gross margins remain healthy at 77.49% in Q3 2024
• ROE shows improvement, reaching 49.26% in Q3 2024
• Debt-to-Equity ratio increased to 235% in Q3, indicating higher leverage
• Current ratio of 1.11x suggests adequate liquidity

Market Position According to recent analysis, while WES offers an attractive yield of 8.7% and has enhanced its operations through strategic acquisitions, Bill Gross's recent commentary suggests pipeline stocks may be reaching peak valuations.

Conclusion WES appears fairly valued at current levels considering:

1. Below-industry P/E multiple
2. Strong margins despite profit decline
3. Healthy dividend yield
4. Increasing leverage concerns
5. Mixed analyst sentiment

The stock shows signs of being appropriately priced rather than overvalued, with its lower valuation multiples balanced against operational challenges and increasing leverage.

Western Midstream Partners, LP acquires, owns, develops and operates midstream assets. The Company is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas, gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil, and gathering and disposing of produced water. The Company’s midstream assets are located in Texas, New Mexico, Colorado, Utah and Wyoming. In addition, in its capacity as a processor of natural gas, the Company also buys and sells natural gas, NGLs, and condensate on behalf of itself and as an agent for its customers under certain contracts. The Company’s subsidiaries include Western Midstream Operating GP, LLC, Western Midstream Services, LLC, Western Midstream Services Holdings, LLC and Western Midstream Operating, LP.

Based on the provided data and market analysis, here is the price prediction for Western Midstream Partners (WES) stock by 2030:

WES stock is projected to reach $65-70 by 2030, driven by strong fundamentals in the midstream energy sector and growing natural gas demand. The company's strategic positioning in natural gas infrastructure and ongoing expansion projects support this growth trajectory. Current analyst consensus maintains a Hold rating with near-term price targets around $40-43, but long-term prospects appear more bullish due to increasing demand for natural gas infrastructure, particularly from AI data centers and manufacturing sector electrification.

The stock's technical indicators and current trading patterns around $40.57 show a stable base for future growth, with RSI at 48.71 suggesting balanced momentum that could support sustained long-term appreciation.

WES has a total of 1377 employees.