Kinder Morgan stock sees Buy rating reiterated by UBS on power demand growth

Published 22/07/2025, 15:50
Kinder Morgan stock sees Buy rating reiterated by UBS on power demand growth

Investing.com - UBS has reiterated a Buy rating and $38.00 price target on Kinder Morgan (NYSE:KMI), citing growth opportunities from increasing power demand. The energy infrastructure giant, currently trading at $27.20 with a market capitalization of $60.4 billion, maintains a solid 4.32% dividend yield. According to InvestingPro analysis, the company shows good financial health with consistent dividend growth over seven consecutive years.

The firm noted that despite Kinder Morgan placing $750 million of projects in service, the company’s project backlog increased by $500 million to $9.3 billion during the second quarter of 2025.

Approximately 50% of the projects in Kinder Morgan’s current backlog will serve power demand, according to UBS’s analysis following the company’s second-quarter earnings call.

UBS specifically highlighted three key developments: Natural Gas Pipeline Company’s (NGPL) Texas-Arkansas Power Project, NGPL’s North Extension Project, and Georgia Power Company’s 2025 Integrated Resource Plan.

The firm conducted additional research through regulatory filings to provide more detailed information about these projects after Kinder Morgan’s earnings discussion.

In other recent news, Kinder Morgan reported its second-quarter 2025 earnings, aligning with earnings per share expectations and surpassing revenue forecasts. The company posted an EPS of $0.28 and reported revenue of $4.04 billion, exceeding the anticipated $3.75 billion. UBS reiterated its Buy rating and set a $38.00 price target following the strong performance, noting the company’s earnings exceeded market expectations and project backlog growth surpassed forecasts. Mizuho (NYSE:MFG) reaffirmed its Outperform rating with a $32.00 price target, as Kinder Morgan’s adjusted EBITDA of $1,972 million aligned with both Street and Mizuho estimates. Stifel maintained its Hold rating and $28.00 price target after the company reported quarterly EBITDA of $1.97 billion, slightly surpassing the street consensus. Scotiabank (TSX:BNS) raised its price target to $28.00 from $27.00, citing improved gas transport volumes, particularly from the Trident (NSE:TRIE) expansion and KinderHawk investment. These updates reflect recent developments surrounding Kinder Morgan’s financial and operational performance.

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