Scotiabank raises Kinder Morgan stock price target to $28 on improved gas volumes

Published 18/07/2025, 13:12
Scotiabank raises Kinder Morgan stock price target to $28 on improved gas volumes

Investing.com - Scotiabank (TSX:BNS) raised its price target on Kinder Morgan (NYSE:KMI) to $28.00 from $27.00 on Friday, while maintaining a Sector Perform rating on the stock. According to InvestingPro data, analyst targets for KMI range from $24.00 to $38.00, with the stock currently trading at $27.49.

The price target increase reflects Scotiabank’s expectation of slightly better gas transport volumes, specifically citing the Trident (NSE:TRIE) expansion and KinderHawk investment as contributing factors.

The firm also noted continued strength in Kinder Morgan’s Terminals segment, though it expects performance at "slightly lower levels from current year."

Despite the higher price target, Scotiabank maintained its Sector Perform rating, indicating that Kinder Morgan shares "appear to fully price in anticipated growth and thematic sentiment" over the forecast period from third quarter 2025 through fourth quarter 2028.

The new $28 price target is based on a multiple of 10.25 times the firm’s fiscal year 2027 EBITDA estimate, with Scotiabank noting that the majority of expected growth for Kinder Morgan will happen toward the end of its forecast period.

In other recent news, Kinder Morgan reported strong second-quarter 2025 earnings, with revenue reaching $4.04 billion, surpassing the forecasted $3.75 billion. The company’s earnings per share (EPS) aligned with expectations at $0.28, demonstrating stability. Kinder Morgan’s adjusted EBITDA saw a 6% increase, and net income rose by 24% compared to the same quarter in 2024. UBS reiterated its Buy rating with a $38.00 price target, highlighting the company’s robust backlog growth as a positive indicator of its project pipeline management.

Stifel maintained its Hold rating and $28.00 price target, noting that the company’s quarterly EBITDA of $1.97 billion slightly exceeded both its own and the street’s estimates. Mizuho (NYSE:MFG) also reaffirmed an Outperform rating with a $32.00 price target, emphasizing the company’s strategic investments in natural gas infrastructure as a driver of future returns. Kinder Morgan’s project backlog increased by $0.5 billion, supported by expansions in the Haynesville basin and other assets.

The company emphasized the strength of its natural gas business, particularly in the Gulf Coast and southern U.S. regions, and highlighted the potential for favorable tax benefits in the coming years. These developments reflect Kinder Morgan’s ongoing efforts to capitalize on growth opportunities in a competitive energy market.

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