Manav Gupta, an analyst from UBS, reiterated the Buy rating on Kinder Morgan. The associated price target was raised to $38.00.
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Manav Gupta has given his Buy rating due to a combination of factors that highlight Kinder Morgan’s strategic positioning and growth potential. The company is well-leveraged to benefit from the increasing demand for natural gas, particularly in the Southeast region, where several expansion projects are underway. These projects, such as the South System Expansion 4 and the Mississippi Crossing, are expected to capitalize on the growing energy needs and contribute significantly to the company’s growth.
Furthermore, Kinder Morgan’s backlog has shown resilience, increasing by $500 million despite the completion of $750 million worth of projects. This backlog, now standing at $9.3 billion, is heavily weighted towards power and LNG projects, indicating strong future revenue streams. The company’s strategic acquisitions and expansions in key regions like Haynesville and Bakken, along with its robust asset footprint, position it well to continue its growth trajectory. These factors collectively underpin Gupta’s confidence in recommending a Buy rating for Kinder Morgan’s stock.
According to TipRanks, Gupta is a 4-star analyst with an average return of 5.2% and a 59.92% success rate. Gupta covers the Energy sector, focusing on stocks such as Kinder Morgan, HF Sinclair Corporation, and Valero Energy.
In another report released on September 18, BMO Capital also initiated coverage with a Buy rating on the stock with a $32.00 price target.