DT Midstream initiated with a Buy at UBS

UBS initiated coverage of DT Midstream (DTM) with a Buy rating and $102 price target DT Midstream’s pure play natural gas midstream portfolio is very well-positioned to benefit from macro trend of growing demand driven by coal to gas switching, power needs for data centers and others, industrial demand for gas and LNG exports, the analyst tells investors in a research note. The company’s Haynesville assets are also well-positioned to service growing demand from new and proposed LNG terminals on the Gulf Coast that could drive incremental demand of about 12Bcf/d, which would be a major tailwind for gathering segment, UBS says.