Analyst Jason Gabelman from TD Cowen maintained a Hold rating on Oneok and decreased the price target to $76.00 from $87.00.
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Jason Gabelman has given his Hold rating due to a combination of factors affecting Oneok’s financial outlook. The company has not reaffirmed its previous guidance for mid-to-high single-digit EBITDA growth in 2026, instead focusing on its 2025 performance and ongoing discussions with producers about drilling plans. This cautious approach, coupled with the company’s aim to achieve a 3.5x debt-to-EBITDA target by the fourth quarter of 2026 before increasing share buybacks, suggests a period of slower growth and limited distributions, which could lead to volatile equity performance in the near term.
Furthermore, while Oneok anticipates some growth from synergies and new projects, such as the Denver pipeline, there are concerns about the impact of lower oil prices on volumes. The company’s forecasted $8.6 billion EBITDA for 2026 incorporates these factors, but the lack of strong growth drivers and the timing of potential buybacks place Oneok in a challenging position. As a result, Gabelman has adjusted the price target to $76, reflecting a more conservative earnings outlook and valuation based on a balanced view of free cash flow and 2026 EBITDA projections.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 6.2% and a 55.66% success rate. Gabelman covers the Energy sector, focusing on stocks such as Chevron, Shell, and Exxon Mobil.
In another report released on October 24, Goldman Sachs also maintained a Hold rating on the stock with a $75.00 price target.