EnLink shares downgraded to Hold with $15 target

Published 29/08/2024, 22:14
EnLink shares downgraded to Hold with $15 target

On Thursday, EnLink Midstream, LLC (NYSE:ENLC) experienced a shift in stock rating as a Stifel analyst moved the company from Buy to Hold, while maintaining a price target of $15.00. The adjustment follows the announcement that ONEOK , Inc. (NYSE:NYSE:OKE) has entered into an agreement with Global Infrastructure Partners (GIP) to acquire a controlling interest in EnLink Midstream LLC, as well as all of GIP's interest in Medallion Midstream.

The analyst from Stifel has decided to maintain the current rating and target price for ONEOK, Inc. despite the recent developments. The decision to downgrade EnLink Midstream's rating to Hold reflects the new corporate structure and ownership changes resulting from the agreement with ONEOK, Inc. and Global Infrastructure Partners.

The transaction details reveal ONEOK's strategic move to expand its midstream services by acquiring GIP's stakes in EnLink Midstream and Medallion Midstream. This acquisition is significant as it consolidates ONEOK's position within the midstream sector, allowing for a potential increase in operational efficiencies and market reach.

The price target for EnLink Midstream remains at $15.00, indicating that the Stifel analyst does not foresee significant price movement in the near term following the announcement of the acquisition. The Hold rating suggests a neutral stance on the stock, advising investors to maintain their current positions without adding additional shares.

The market will continue to monitor the impact of ONEOK's acquisition of EnLink Midstream and Medallion Midstream as the companies integrate their operations and pursue further growth within the midstream industry. The maintained price target and rating adjustment reflect the immediate market outlook for EnLink Midstream following the recent corporate developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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