Wall St futures flat amid US-China trade jitters; bank earnings in focus
Investing.com - BMO Capital initiated coverage on Kinder Morgan (NYSE:KMI), a $61.6 billion market cap energy infrastructure company, with an Outperform rating and a $32.00 price target on Thursday. According to InvestingPro data, the company maintains a "GOOD" overall financial health score.
The investment firm cited Kinder Morgan’s favorable positioning for growth after a prolonged period of limited expansion, as demand for gas infrastructure increases in response to power demand growth, LNG exports, and re-industrialization. The company has demonstrated stability through its dividend policy, having maintained payments for 15 consecutive years with a current yield of 4.24%.
BMO Capital noted that from 2019-2024, Kinder Morgan’s EBITDA grew at a compound annual growth rate (CAGR) of less than 1%, but forecasts this improving to more than 4% from 2025-2030 based on the company’s current visible backlog of expansion projects.
The firm highlighted that Kinder Morgan is trading at 10.9x their 2026 estimated EBITDA plus a 4.4% dividend, which they view as an attractive risk/reward profile.
BMO Capital’s coverage initiation was announced by analyst Ameet Thakkar on September 18, 2025.
In other recent news, Kinder Morgan reported strong earnings for the second quarter of 2025, surpassing market expectations. The company also saw growth in its project backlog, which exceeded analyst forecasts. UBS has reiterated its Buy rating on Kinder Morgan with a price target of $38.00, citing growth opportunities from increasing power demand. Additionally, UBS slightly adjusted its third-quarter 2025 EBITDA estimate to $1,984 million, down from $2,004 million.
Fitch Ratings upgraded Kinder Morgan’s Long-Term Issuer Default Ratings to ’BBB+’ from ’BBB’, highlighting a stable outlook. This upgrade reflects Fitch’s expectation that the company will maintain leverage below 4.0x, supported by management’s commitment to funding growth primarily through internally generated cash flow. Meanwhile, Scotiabank raised its price target for Kinder Morgan to $28.00 from $27.00, maintaining a Sector Perform rating. The increase is attributed to improved gas transport volumes, particularly from the Trident expansion and KinderHawk investment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.