Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, UBS analyst Manav Gupta confirmed a Buy rating on DT Midstream (NYSE:DTM), with a price target remaining steady at $115.00. The stock, currently trading at $101.75, has demonstrated remarkable strength with a 61% return over the past year. According to InvestingPro data, analyst consensus remains moderately bullish, with targets ranging from $89 to $115. Gupta highlighted the growing market recognition of the need for more gas infrastructure to support demand from various sectors, including Power and LNG. DT Midstream’s management is confident that their asset base is strategically positioned to capitalize on these emerging opportunities. The company’s strong positioning is reflected in its solid financial performance, with revenue growing at 10.83% and maintaining a healthy gross profit margin of 76.6%.
The analyst noted that the potential surrounding the assets acquired from OKE has increased compared to when the acquisition was first announced. DT Midstream is focused on leveraging its core competencies and is not looking to expand into areas where it does not have a competitive advantage. Additionally, the company is not planning to enter the actual power generation business.
Gupta’s commentary includes reference to DT Midstream’s decision to provide services for utility-scale power generation projects. This new agreement, which was discussed during the fourth-quarter 2024 earnings call, was negotiated in the interim between the announcement and the closing of the OKE asset deal. This move aligns with DT Midstream’s strategy to focus on its strengths and avoid overextending into less familiar ventures.
DT Midstream operates as a premium natural gas infrastructure company, and its strategic decisions are critical as the energy market evolves to meet increasing demands. The company’s selective approach to growth and project engagement reflects a disciplined strategy to maintain a competitive edge within the industry.
The reaffirmed Buy rating and price target by UBS signify a positive outlook for DT Midstream’s stock, as the company continues to navigate the expanding landscape of energy infrastructure and demand. The company has raised its dividend for four consecutive years, currently offering a 3.2% yield. While InvestingPro analysis suggests the stock may be trading above its Fair Value, subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into DTM’s valuation and growth prospects.
In other recent news, DT Midstream Inc. reported its Q1 2025 earnings, highlighting a mixed performance. The company achieved a revenue of $288.81 million, surpassing the forecast of $285.91 million. However, the earnings per share (EPS) fell slightly short at $1.06, compared to the expected $1.08. Despite the revenue beat, the company’s stock experienced a decline in pre-market trading. DT Midstream reaffirmed its 2025 and 2026 adjusted EBITDA guidance, maintaining confidence in its strategic initiatives. The firm has been focusing on integrating newly acquired interstate pipelines, which contributed positively to its pipeline segment performance. The company also announced a dividend of $0.82 per share, consistent with the previous quarter. Furthermore, DT Midstream is targeting a 5-7% annual dividend growth and aims to achieve an investment-grade credit rating.
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