Robert Kad, an analyst from Morgan Stanley, maintained the Buy rating on Oneok. The associated price target remains the same with $110.00.
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Robert Kad has given his Buy rating due to a combination of factors that highlight Oneok’s potential for strong performance within the midstream sector. Despite the negative skew in oil macro risks, Kad identifies a dislocation in Oneok’s valuation relative to its fundamentals, suggesting that the company and its peers could lead the sector’s performance by 2026.
Furthermore, the positive investor sentiment towards Oneok’s current valuation, cash flow resilience, and management’s proven execution track record supports the Buy rating. The company’s strategic focus on counter-cyclical share repurchases over accelerated deleveraging is seen as a favorable approach. Additionally, the management’s efforts to optimize and blend activities following recent acquisitions are expected to improve quarterly trends, further enhancing Oneok’s investment appeal.
In another report released on October 2, J.P. Morgan also maintained a Buy rating on the stock with a $91.00 price target.
OKE’s price has also changed moderately for the past six months – from $84.860 to $71.250, which is a -16.04% drop .