Goldman Sachs analyst John Mackay has reiterated their bullish stance on KMI stock, giving a Buy rating on April 18.
John Mackay has given his Buy rating due to a combination of factors that underline the ongoing and potential strength of Kinder Morgan. The company’s first quarter 2024 results were solid, despite the expectations of a downturn due to warmer weather and decreased gathering volumes. Instead, Kinder Morgan maintained its EBITDA outlook for the year, which is a testament to the resilience and underlying performance of its core natural gas pipeline and storage assets. Mackay’s confidence is further bolstered by the slight increase in EBITDA estimates for the years 2024-2027, reflecting the anticipated growth in this sector.
Additionally, Mackay’s optimism is supported by Kinder Morgan’s strategic outlook, including the expected rise in natural gas demand driven by data center power generation and LNG consumption. Management’s expectation to capture a significant market share, along with the potential announcement of specific projects in future quarters, also contributes to the positive stance. Furthermore, Mackay views the company’s revised leverage policy, which lowers their target ratio, as a strong signal of financial prudence and a commitment to maintaining a sustainable leverage level. These elements combined reaffirm Mackay’s bullish stance on Kinder Morgan’s stock.
In another report released on April 18, TD Securities also reiterated a Buy rating on the stock with a $21.00 price target.
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Kinder Morgan (KMI) Company Description:
Texas-based Kinder Morgan, Inc. is an energy infrastructure company. The company is engaged in the operation of pipelines and terminals that transport natural gas, gasoline, crude oil, carbon dioxide (CO2) and other products. It also stores petroleum products, chemicals and handles bulk materials like ethanol, coal, petroleum coke and steel. It operates through the following segments: Natural Gas Pipelines, CO2, Terminals, and Products Pipelines.
