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Jefferies initiates DT Midstream stock with Buy rating on data center growth

Published 03/11/2025, 11:54
Jefferies initiates DT Midstream stock with Buy rating on data center growth
DTM
0.47%

Investing.com - DT Midstream (NYSE:DTM) received a Buy rating from Jefferies as the firm initiated coverage with a $125.00 price target, representing a 14% upside from the current price of $109.49. The stock is trading near its 52-week high of $115.80, according to InvestingPro data.

Jefferies highlighted DTM’s "premium growth prospects in key Midwest data center markets" that support a 9% EBITDA CAGR from 2025-2030, exceeding the company’s long-term guidance of 5-7% growth on $3.9 billion of capital expenditures. This optimism aligns with DTM’s impressive 20.39% revenue growth over the last twelve months.

The firm acknowledged that while DTM appears "pricey on near-term metrics," the company "grows into its valuation" with its pipeline and gathering exposure in the Upper Midwest and Haynesville regions.

Jefferies believes "the market is underappreciating the Midwest power demand story overall," positioning DTM favorably in this growth segment.

The research note also pointed to DTM being "well-positioned following its 2024 acquisition of OKE’s Midwest pipes," which strengthens its infrastructure footprint in the region.

In other recent news, DT Midstream Inc. announced its financial results for the third quarter of 2025, reporting earnings that surpassed analyst expectations. The company achieved an adjusted earnings per share (EPS) of $1.13, exceeding the forecasted $1.06, which translates to a 6.6% positive surprise. Additionally, DT Midstream reported revenue of $309.16 million, surpassing the anticipated $302.47 million by 2.21%. These financial results highlight a strong performance for the company in this period. Analysts had projected lower figures, making the actual results noteworthy for investors. The company’s ability to exceed both earnings and revenue forecasts is a significant development. These recent figures provide insight into the company’s financial health and operational efficiency.

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

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