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Investing.com - TD Cowen has initiated coverage on Kinder Morgan (NYSE:KMI) with a Buy rating and a price target of $34.00, according to a research note released Monday. The $63 billion market cap company currently trades above InvestingPro’s Fair Value estimate, with analyst targets ranging from $24 to $38.
The research firm cited Kinder Morgan’s rapidly growing project backlog, which has expanded due to increasing demand from LNG export capacity and data center requirements. The company generated $15.5 billion in revenue over the last twelve months, with a solid gross profit margin of 50%.
TD Cowen noted that while the company has indicated future projects should require lower capital investment, the firm believes Kinder Morgan’s existing infrastructure footprint positions it well for additional growth opportunities.
The analyst team at TD Cowen also expressed confidence that Kinder Morgan’s Product and Terminal segments could demonstrate greater resilience than market expectations currently suggest.
Kinder Morgan, a major energy infrastructure company, has been strategically positioning itself to capitalize on the growing demand for natural gas transportation and storage services needed to support both LNG exports and power-hungry data centers. The stock has demonstrated low price volatility with a beta of 0.75, making it potentially attractive for stability-focused investors.
In other recent news, Kinder Morgan is set to report its earnings, with RBC Capital maintaining a price target of $28 and a Sector Perform rating. RBC Capital anticipates the earnings call will highlight additions to Kinder Morgan’s project backlog, projecting at least $400 million in new projects. Meanwhile, UBS has reiterated a Buy rating and a $38 price target, emphasizing the potential of Kinder Morgan’s Arizona expansion projects, which could significantly boost the company’s project backlog. UBS also noted the full-quarter contribution of the Outrigger acquisition, which positively impacts earnings estimates, although some factors like D3 RIN price headwinds might offset these benefits.
Stifel analysts have raised their price target for Kinder Morgan to $28, maintaining a Hold rating. This adjustment reflects updated estimates for 2025, particularly concerning natural gas pipelines and CO2 operations. Stifel’s decision to keep a Hold rating indicates a neutral stance on the stock. Additionally, UBS projects that if Kinder Morgan proceeds with the Copper State Connector project in Arizona, it could meaningfully increase the company’s project backlog to $14.5 billion. These developments highlight Kinder Morgan’s strategic initiatives and ongoing projects, which are of keen interest to investors.
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