Analyst Jean Ann Salisbury of Bank of America Securities reiterated a Buy rating on Kinder Morgan, retaining the price target of $32.00.
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Jean Ann Salisbury’s rating is based on Kinder Morgan’s consistent performance and strategic project expansions. The company’s second-quarter earnings were in line with expectations, and despite some fluctuations in specific segments, the overall financial health remains robust. A significant factor contributing to the Buy rating is the increase in project backlog, which rose from $8.8 billion to $9.3 billion, driven by several smaller projects. This increase suggests a positive outlook for future growth, even without a major project on the immediate horizon.
Additionally, Kinder Morgan benefits from improved project multiples and strategic investments, such as the Haynesville gathering expansion and other favorable projects. The company is also poised to benefit from streamlined federal permitting processes and deferred cash taxes, enhancing its financial flexibility. These factors, combined with a preference for gas midstream investments, support the Buy rating, indicating confidence in Kinder Morgan’s ability to exceed growth expectations in the coming years.
In another report released today, Barclays also maintained a Buy rating on the stock with a $32.00 price target.