Of the analysts surveyed by Reuters, 58% rated Kinder Morgan (KMI) as a “buy,” while 42% rated the stock a “hold.” KMI’s mean price target of $23.44 implies an upside of 39% in the next year from its current price of $16.87.
As the above graph shows, the mean target price for Kinder Morgan has fallen to $23.44 from $25.65 in May 2017.
Kinder Morgan has fallen nearly 22% year-to-date. For the latest on Kinder Morgan’s stock performance, read Kinder Morgan’s 3.7% Fall in the Week ended November 17.
In comparison, nearly 25% of analysts rated ONEOK (OKE) as a “buy,” 56% rated Enbridge (ENB) as a “buy,” and 58% rated Targa Resources (TRGP) as a “buy.” MLP giant Enterprise Product Partners (EPD) received “buy” recommendations from 92% of the surveyed analysts. By comparison, nearly 82% of analysts have rated Energy Transfer Partners (ETP) stock a “buy.”
A positive outlook for natural gas, which makes up Kinder Morgan’s largest market, should benefit Kinder Morgan in the long term. Additionally, Kinder Morgan’s diversified operations and mostly fee-based cash flows provide it with relative cash flow stability. The company continues to focus on reducing its leverage, which has come down from 2015 levels.
Institutional investor sentiment for KMI looks positive. However, with its low yield, it might not attract income investors as it did earlier.