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RBC Capital raised its price target for the pipeline operator from $36 to $38. This move follows a week where several analysts adjusted their expectations after the company revealed a massive $14.4 billion backlog of new projects. The average analyst target across all firms now sits at $38. While the stock price has risen recently, analysts are increasingly focused on the company's role in powering AI data centers. These projects provide long-term, steady income that makes the business more predictable over the next several years.
Source: RBC Capital
After Kinder Morgan reported its October results, we updated our fair value. We moved our rating from Avoid to Watch. We have added the scale of the construction project backlog and the volume of natural gas transported to what we track. We also added a new measure to monitor how high fuel prices affect the amount of refined products the company moves.
Freedom Broker upgraded the stock to a Buy rating on Thursday. This move follows the company's recent quarterly report, which showed record profits and a growing list of future natural gas projects.
While the firm did not set a new price target, the average target across all analysts who follow the company is now about $38. This suggests they see room for the stock to rise from its current price of roughly $35.
Source: Freedom Broker
Kinder Morgan earned 35 cents per share this quarter, beating the 32 cents analysts expected. The company is seeing a surge in demand for natural gas infrastructure, adding 5.4 billion dollars to its backlog of future projects. This is the largest list of upcoming gas projects in the company's history, which suggests a long runway of growth as it builds out the pipes and storage needed for energy transport.
Management also raised the quarterly dividend to roughly 30 cents per share, a 2 percent increase from last year. While the business is performing well, it is worth remembering that these large construction projects take years to complete and require heavy spending upfront. The stock rose about 1 percent following the news, as the record results and growing project list show the company is capturing more of the current demand for gas transport.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Kinder Morgan will share its latest quarterly results later today, with analysts expecting revenue of about 4.4 billion dollars. As one of the largest energy infrastructure companies in North America, its results often turn on how much natural gas and oil moved through its vast network of pipelines. Beyond the profit numbers, the focus will be on the company's outlook for its backlog of projects. Investors will be watching for updates on how much it plans to spend on new pipelines and storage to meet the growing demand for natural gas from power plants and data centers.
Management has moved from narrow misses to a consistent streak of beats, showing they have gained a much tighter grip on forecasting as the business shifts toward high-growth infrastructure projects.
| Expectation | |
|---|---|
| EPS | $0.38 |
| Revenue | $4.46B |
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