DT Midstream stock maintains Buy rating at UBS despite quarterly adjustment

Investing.com - UBS has reiterated its Buy rating and $115.00 price target on DT Midstream (NYSE:DTM), despite adjusting its quarterly earnings expectations. The stock, currently trading at $104.44, has demonstrated remarkable strength with a 55.36% return over the past year. According to InvestingPro data, DTM maintains a "Good" financial health score, supported by consistent dividend growth over four consecutive years.

The investment firm revised its second-quarter 2025 EBITDA forecast downward to $268 million from $283 million, citing a rate step down on Guardian, business seasonality, and shoulder season maintenance activity.

UBS noted that the current consensus estimate for DTM’s second-quarter 2025 EBITDA stands at $280 million, suggesting market expectations may need adjustment.

The firm projects Pipeline EBITDA to reach $185 million in the second quarter, down from $197 million in the first quarter, while Gathering EBITDA is expected to hold steady at $83 million.

In May 2025, DT Midstream achieved an investment grade credit rating when Moody’s Ratings upgraded its credit rating to Baa3 with a stable outlook, a positive development for the company’s financial standing. This upgrade aligns with the company’s strong fundamentals, including a healthy 76.63% gross profit margin and robust revenue growth of 10.83% over the last twelve months. Discover more detailed insights and 8 additional ProTips for DTM through a comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, DT Midstream reported its first-quarter 2025 earnings, showcasing a revenue of $288.81 million, which exceeded the forecast of $285.91 million. However, the company’s earnings per share (EPS) slightly missed expectations, coming in at $1.06 compared to the anticipated $1.08. Moody’s Ratings upgraded DT Midstream’s senior unsecured notes rating to Baa3 from Ba2, citing enhanced scale and earnings stability, while downgrading its senior secured revolving credit facility rating to align with the company’s unsecured notes. BofA Securities maintained its Buy rating and $118.00 price target on DT Midstream, highlighting the company’s successful Millennium PRO open season and potential future EBITDA generation. UBS also reaffirmed a Buy rating with a price target of $115.00, noting the strategic positioning of DT Midstream’s asset base to capitalize on emerging opportunities in gas infrastructure. The company has expressed confidence in its strategic initiatives and reaffirmed its 2025 and 2026 EBITDA guidance. Additionally, DT Midstream’s management emphasized the durability of its contracts and its strategic focus on utility-scale power generation projects.

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