Citi opens ‘downside 30-day short-term view’ on Kinetik Holdings

Citi analyst Spiro Dounis adds a “downside 30-day short-term view” on shares of Kinetik Holdings (KNTK) while keeping a Buy rating on the name with a $55 price target The firm believes two events tied to the Durango acquisition could represent a short-term overhang. Up to 11.5M shares could come to market due to the lockup expiration on June 24 and deferred compensation of July 1, representing 7% of the total shares outstanding, the analyst tells investors in a research note. Citi estimates these shares, if monetized, would take over nine days to be absorbed by the market based on 30 day average volume levels. The firm continues to see “compelling upside longer term,” but believes Kinetik could be range-bound over the next month due to the potential for more equity to come to market.