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Kinder Morgan: Analysts Cut the Target Price Last Week

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Kinder Morgan’s moving averages

Kinder Morgan (KMI) stock is trading 7% and 9% below its 50-day and 200-day moving averages, respectively. The deep discount to the two averages likely indicates weakness for the stock in the near term. Kinder Morgan’s 200-day moving average might act as a resistance for the stock. So far, Kinder Morgan is down 6% in 2018. The stock has been in a downtrend for five consecutive weeks.

Recently, the short interest in Kinder Morgan rose 19%. To learn more, read Short Interest in Kinder Morgan Rose 19%.

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Analysts’ recommendations

Among the analysts surveyed by Reuters, 55% rated Kinder Morgan as a “buy” and 45% rated it as a “hold.” The consensus target price for Kinder Morgan in a year is $22. Kinder Morgan stock is trading at $17.06. If Kinder Morgan achieves its target price, it would imply 29% upside in a year.

Kinder Morgan saw two target price cuts last week. On February 16, 2018, Bernstein cut the target price from $22 to $21. On February 12, J.P. Morgan cut Kinder Morgan’s target price from $22 to $21.

On February 9, 2018, Morgan Stanley cut Kinder Morgan’s target price from $24 to $23.

As for Kinder Morgan’s peers, 76% of the analysts rated Energy Transfer Partners (ETP) as a “buy” and 71% rated Williams Companies (WMB) as a “buy.”

To learn how Wall Street analysts’ target prices for midstream companies changed in the past year, read How Analysts Have Changed Their Views on Midstream Companies.

Next, we’ll look at what top institutional investors did with their Kinder Morgan holdings.

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