Goldman Sachs analyst John Mackay maintained a Buy rating on Kinder Morgan (KMI – Research Report) today and set a price target of $21.00.
John Mackay has given his Buy rating due to a combination of factors that suggest a positive outlook for Kinder Morgan. The expectation of solid operating leverage in the company’s natural gas operations and progress in renewable natural gas (RNG) execution are key drivers of this optimistic stance. Additionally, with Kinder Morgan’s upcoming Analyst Day, there is anticipation for the company to provide further clarity on its 2024 guidance, including segment earnings before depreciation and amortization (EBDA), volume forecasts, and an updated project backlog, all of which could reinforce investor confidence.
Moreover, Mackay’s analysis includes the impact of the recent STX Midstream acquisition, which is now reflected in the adjusted company estimates. His report underscores key areas of investor focus, such as the conservative approach to natural gas storage and services upside, cash flow generation, balance sheet improvements, and the company’s disciplined view on mergers and acquisitions. The slight increase in estimates, post-STX deal closure, and the maintenance of a $21 price target are indicative of a belief in Kinder Morgan’s strong risk-reward proposition within the industry, further justifying the Buy rating.
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Kinder Morgan (KMI) Company Description:
Texas-based Kinder Morgan, Inc. is an energy infrastructure company. The company is engaged in the operation of pipelines and terminals that transport natural gas, gasoline, crude oil, carbon dioxide (CO2) and other products. It also stores petroleum products, chemicals and handles bulk materials like ethanol, coal, petroleum coke and steel. It operates through the following segments: Natural Gas Pipelines, CO2, Terminals, and Products Pipelines.
Read More on KMI:
- NextEra Energy Partners price target raised to $30 from $22 at UBS
- NextEra Energy Partners, LP completes sale of Texas natural gas pipeline portfolio
- Kinder Morgan closes on $1.815B purchase of NextEra Partners’ South Texas assets
- Kinder Morgan CAO Mathews sells 30,000 common shares
- Kinder Morgan sees FY24 EPS of $1.15, consensus $1.19
