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Investing.com - UBS has reiterated its Buy rating and $38.00 price target on Kinder Morgan (NYSE:KMI) following the company’s strong second-quarter 2025 performance. The stock, currently trading at $27.38, appears overvalued according to InvestingPro analysis, though it offers an attractive 4.19% dividend yield.
The midstream energy company reported earnings that exceeded market expectations, while also posting growth in its project backlog that surpassed analyst forecasts. With a market capitalization of $60.8 billion and trailing twelve-month revenue of $15.5 billion, Kinder Morgan maintains a solid market position.
Kinder Morgan placed approximately $750 million worth of projects into service during the second quarter of 2025, yet still managed to increase its net backlog by $0.5 billion.
UBS highlighted this backlog growth as "a major positive" for the company, demonstrating Kinder Morgan’s ability to replenish its project pipeline despite bringing significant assets online.
The investment firm attributed Kinder Morgan’s continued backlog expansion to the company’s existing asset footprint and strong track record in project delivery, which have helped it maintain growth momentum in what UBS described as "a competitive environment."
In other recent news, Kinder Morgan reported its second-quarter 2025 earnings, meeting earnings per share (EPS) expectations while surpassing revenue forecasts. The company posted an EPS of $0.28, aligning with analyst predictions, and reported revenue of $4.04 billion, exceeding the anticipated $3.75 billion. Kinder Morgan demonstrated solid performance with an adjusted EBITDA increase of 6% and a 12% rise in adjusted EPS compared to the previous year. The company’s net income attributable to Kinder Morgan was $715 million, marking a 24% increase from the same quarter in 2024.
Mizuho (NYSE:MFG) reiterated an Outperform rating with a $32.00 price target on Kinder Morgan, following the company’s earnings report. The firm highlighted a $0.5 billion expansion capital allocation to the KinderHawk gathering footprint in the Haynesville basin, which is expected to deliver solid returns. Stifel also maintained its Hold rating and $28.00 price target after Kinder Morgan’s earnings exceeded expectations, noting the strength in its natural gas business. Kinder Morgan’s project backlog increased by a net $0.5 billion, with expansions in natural gas infrastructure assets.
The company emphasized the strength in its natural gas business, identifying liquefied natural gas (LNG) and power load as key drivers for future growth. Management noted that lower-return projects had entered service while higher-return initiatives became part of the backlog. Kinder Morgan expects to exceed its 2025 budget, partly due to contributions from the Outrigger acquisition, and anticipates significant tax benefits in 2026 and 2027.
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