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Oneok resumed with a Neutral at Goldman Sachs

Goldman Sachs analyst John Mackay resumed coverage of Oneok (OKE) with a Neutral rating and $75 price target The company’s recent deals – Magellan, EnLink, Medallion – added scale, earnings stability, and an extended growth outlook, but also came alongside an erosion in Oneok’s multiple from a premium to now a modest discount vs. peers, the analyst tells investors in a research note. It could take some time for the multiple to stabilize before potentially expanding again – particularly given the “relatively low multiple compression from here”, the firm added.

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