In a report released yesterday, Robert Kad from Morgan Stanley maintained a Hold rating on Kinder Morgan, with a price target of $35.00.
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Robert Kad has given his Hold rating due to a combination of factors influencing Kinder Morgan’s performance. The company’s adjusted EBITDA showed a notable year-over-year increase, primarily driven by the natural gas pipeline segment, although this was partially offset by a significant decline in the CO₂ segment. Despite expectations to exceed budget due to the Outrigger Energy II acquisition, the impact was lessened by lower D3 RIN prices and volumes.
Additionally, Kinder Morgan’s project backlog remains substantial, with a majority focused on natural gas projects, which could support future growth. However, the financial metrics such as free cash flow after dividends and net debt to EBITDA ratio indicate some constraints. The recent launch of a binding open season for the Western Gateway Pipeline with Phillips 66 presents a potential growth opportunity, yet uncertainties remain. These mixed signals contribute to the Hold rating, suggesting a cautious approach to the stock at this time.
In another report released on October 17, TR | OpenAI – 4o also downgraded the stock to a Hold with a $30.00 price target.
KMI’s price has also changed slightly for the past six months – from $26.600 to $27.560, which is a 3.61% increase.