UBS reiterates buy rating on Kinder Morgan stock with $38 price target

Published 12/09/2025, 15:00
UBS reiterates buy rating on Kinder Morgan stock with $38 price target

Investing.com - UBS maintained its Buy rating on Kinder Morgan (NYSE:KMI) with a price target of $38.00, according to a research note released Friday. The energy infrastructure giant, currently trading at $27.63 with a market capitalization of $61.4 billion, offers a 4.24% dividend yield. According to InvestingPro analysis, the stock appears overvalued at current levels.

UBS analyst Manav Gupta slightly adjusted the third-quarter 2025 EBITDA estimate for the energy infrastructure company to $1,984 million, down from the previous estimate of $2,004 million.

The firm attributed the modest revisions to lower-than-expected crude oil, natural gas, and D3 RIN prices relative to their earlier projections.

For the third quarter of 2025, UBS forecasts Natural Gas Pipelines EBDDA of $1,358 million compared to $1,347 million in the second quarter, while Product Pipelines EBDDA is expected to reach $285 million versus $289 million in the previous quarter.

The investment bank also projects Terminals EBDDA of $293 million compared to $300 million in the second quarter, and CO2 EBDDA of $143 million versus $145 million in the prior quarter.

In other recent news, Kinder Morgan reported strong second-quarter 2025 earnings, surpassing market expectations. The company posted a quarterly EBITDA of $1.97 billion, exceeding both Stifel’s estimate of $1.91 billion and the street consensus of $1.96 billion. Fitch Ratings upgraded Kinder Morgan’s Long-Term Issuer Default Ratings to ’BBB+’ from ’BBB’, citing a lower leverage outlook and management’s commitment to funding growth through internally generated cash flow. UBS reiterated its Buy rating on Kinder Morgan, setting a price target of $38.00, supported by growth opportunities from increasing power demand. The company’s project backlog increased by $500 million to $9.3 billion during the second quarter of 2025, despite placing $750 million of projects in service. Scotiabank raised its price target for Kinder Morgan to $28.00, reflecting expectations of improved gas transport volumes due to the Trident expansion and KinderHawk investment. Meanwhile, Stifel maintained a Hold rating with a $28.00 price target, following the company’s earnings results.

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