ONEOK stock price target lowered to $88 at RBC Capital on commodity headwinds

Published 13/08/2025, 15:50
ONEOK stock price target lowered to $88 at RBC Capital on commodity headwinds

Investing.com - RBC Capital has lowered its price target on ONEOK Inc (NYSE:OKE) to $88.00 from $94.00 while maintaining a Sector Perform rating on the stock. According to InvestingPro data, analyst targets for ONEOK range from $85 to $126, with the stock currently trading at $74.52. InvestingPro analysis suggests the stock is currently undervalued.

The price target reduction, announced Wednesday, comes after ONEOK’s second-quarter 2025 earnings release, with RBC citing potential commodity price headwinds in 2026 as the primary reason for the adjustment.

RBC Capital analyst Elvira Scotto noted that ONEOK continues to execute effectively on its growth strategy and synergy capture, with the company benefiting from its larger, more integrated asset base across hydrocarbons.

Despite the price target reduction, RBC actually increased its 2025 Adjusted EBITDA estimate for ONEOK, suggesting near-term performance remains on track.

The firm’s 2026 outlook is more cautious, however, with commodity prices expected to create challenges that prompted the downward revision in the longer-term price target.

In other recent news, ONEOK Inc. reported strong financial results for the second quarter of 2025, highlighting a significant increase in net income. The company also made strategic acquisitions, including an investment in the Delaware Basin, which bolstered its earnings. These developments underscore ONEOK’s focus on expanding its operations and enhancing its financial performance. However, following the earnings report, TD Cowen adjusted its price target for ONEOK to $87 from $91, citing concerns about the company’s 2026 EBITDA projections. Despite maintaining a Hold rating, the firm expressed caution regarding future growth prospects. These recent developments reflect a mix of robust financial performance and tempered analyst expectations.

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