TD Cowen analyst Jason Gabelman has maintained their bullish stance on KMI stock, giving a Buy rating today.
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Jason Gabelman has given his Buy rating due to a combination of factors related to Kinder Morgan’s strategic positioning and project pipeline. Despite a slight negative outlook on the company’s $10 billion pre-FID backlog, which includes mostly smaller projects with a few large ones that could significantly impact value, Gabelman sees potential upside. This optimism is based on Kinder Morgan’s ability to deliver on projects currently in execution, which are not fully reflected in the company’s current valuation.
Furthermore, Kinder Morgan’s unique capabilities in gas storage and its strategic focus on natural gas projects across the southern U.S. provide a competitive edge. The company’s plans to increase capacity and capitalize on opportunities in regions like the Haynesville and Northeast, along with its ability to exceed its annual capex, further support the Buy rating. Gabelman believes these factors position Kinder Morgan well for future growth, particularly as it aims to bring a significant portion of its pre-FID projects to FID next year.
In another report released today, Barclays also maintained a Buy rating on the stock with a $32.00 price target.