Barclays raises Kinder Morgan stock rating, sets $31 target

Published 03/03/2025, 09:22
Barclays raises Kinder Morgan stock rating, sets $31 target

On Monday, Barclays (LON:BARC) analyst Christine Cho upgraded Kinder Morgan stock from Equalweight to Overweight and set a new price target of $31.00. The stock, which has delivered an impressive 63% return over the past year and commands a market capitalization of $60.2 billion, is currently trading above its InvestingPro Fair Value. Cho highlighted Kinder Morgan’s potential to benefit from a positive fundamental outlook for natural gas. The company’s infrastructure assets, which are largely supported by take-or-pay or fee-based contracts, span multiple commodity value chains and regions, providing a strong business foundation. With an EBITDA of $6.63 billion and a consistent track record of raising dividends for seven consecutive years, the company demonstrates solid operational performance. InvestingPro analysis reveals 8 additional key insights about KMI’s financial health and growth prospects.

Kinder Morgan’s business is seen as having solid underpinnings, with long-term advantages expected from the growing demand for natural gas and the subsequent need for additional infrastructure. The company’s Products and Terminals segments contribute to its financial health by generating substantial cash flow, offering further diversification and stability.

Commercially, Kinder Morgan has shown effective execution capabilities, as evidenced by the recent Final Investment Decisions (FIDs) for four significant natural gas infrastructure projects: Trident (NSE:TRIE), MSX, GCX expansion, and SSE4. These projects are driven by both demand-pull and supply-push factors. Cho anticipates Trident will significantly enhance Kinder Morgan’s already strong position in the LNG feedgas infrastructure market and create more opportunities in the gas-to-power sector. For a comprehensive analysis of KMI’s growth potential and execution strategy, investors can access the detailed Pro Research Report available on InvestingPro, which covers 1,400+ top US stocks.

In other recent news, Kinder Morgan Inc (NYSE:KMI). has been highlighted by S&P Global, which upgraded its outlook to positive from stable, affirming all its ratings, including the ’BBB’ issuer credit rating. This revision comes as the company shows strong financial health and continues to expand its natural gas franchise through strategic acquisitions. The company’s projected adjusted EBITDA for 2025 is about $8.1 billion, with expected free cash flow of approximately $2.7 billion after capital spending. In addition, Kinder Morgan has outlined its 2025 business plan, projecting growth based on its strong fundamentals, with a net debt to adjusted EBITDA ratio around 3.8x by the end of 2025. The company forecasts $5.9 billion in cash flow from operations and $2.8 billion in free cash flow for 2025.

In another development, ArcLight Capital Partners (WA:CPAP) has acquired a 25% stake in the Gulf Coast Express Pipeline, which is partly owned by Kinder Morgan’s subsidiary. The pipeline plays a crucial role in transporting natural gas from the Permian Basin to key markets. Additionally, Kinder Morgan has revised its bylaws to streamline corporate governance and shareholder engagement processes. Meanwhile, Stifel has maintained its Hold rating and $27 price target for Kinder Morgan stock, following the company’s fourth-quarter financial results for 2024, which were slightly below expectations. Despite this, the company has seen a significant increase in its project backlog, now valued at $8.1 billion, which is expected to drive future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.