Ameet Thakkar, an analyst from BMO Capital, has initiated a new Buy rating on Kinder Morgan (KMI).
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Ameet Thakkar has given his Buy rating due to a combination of factors that highlight Kinder Morgan’s potential for growth and stability. The company is strategically positioned to benefit from increasing demand for gas infrastructure, driven by rising power demand, LNG exports, and re-industrialization efforts. This demand is expected to significantly enhance Kinder Morgan’s EBITDA growth from 2025 to 2030, with a forecasted improvement to over 4% annually.
Additionally, Kinder Morgan’s extensive network of natural gas pipeline assets, which transport a substantial portion of U.S. gas production and exports, underscores its market strength. Despite past challenges in translating this into significant EBITDA growth, the company is now poised for a positive shift. The attractive dividend yield of 4.4% and a valuation discount of 26% compared to the broader market further support the Buy rating, offering investors a stable platform with exposure to favorable long-term trends in LNG and power demand.
In another report released on September 15, Barclays also maintained a Buy rating on the stock with a $32.00 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KMI in relation to earlier this year.