TD Cowen lowers ONEOK stock price target to $87 on growth concerns

Investing.com - TD Cowen has reduced its price target on ONEOK Inc (NYSE:OKE) to $87.00 from $91.00 while maintaining a Hold rating on the stock. According to InvestingPro data, ONEOK currently trades at $74.46, with analysis suggesting the stock is undervalued based on its Fair Value model.

The adjustment follows ONEOK’s recent earnings report, which revealed downside to the company’s 2026 EBITDA projections, according to the research firm.

TD Cowen noted that investor feedback indicates concerns about ONEOK’s future growth rate, particularly as NGL infrastructure appears well developed, along with questions about the company’s ability to maintain elevated rates in the Rockies region.

The research firm positioned its estimates at the lower end of ONEOK’s fiscal year 2025 EBITDA guidance, approximately in line with consensus forecasts.

TD Cowen attributed the price target reduction primarily to a higher share count than previously modeled, which properly reflects the impact of ONEOK’s Enlink acquisition, while basing its valuation on a combination of 2026 estimated EV/EBITDA and net present value of free cash flow.

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 attributed this growth to strategic acquisitions, including a notable investment in the Delaware Basin. These developments have bolstered ONEOK’s earnings, signaling robust performance in the latest quarter. Additionally, the company’s stock price has remained steady, indicating stable market sentiment. Analysts have taken note of these results, with several firms maintaining their outlook on the company. The strategic expansions and financial performance have positioned ONEOK favorably in the current market environment. These updates reflect the company’s ongoing efforts to enhance its financial standing through targeted investments.

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