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Have Wall Street Analysts Changed Ratings on Kinder Morgan?

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Nov. 20 2020, Updated 5:07 p.m. ET

Analyst recommendations for KMI

Of the analysts surveyed by Reuters, 45% rate Kinder Morgan (KMI) as a “hold,” while 55% rate the stock as a “buy.” The mean target price for Kinder Morgan in a year is $22.1. Kinder Morgan stock is trading at $17.3. If Kinder Morgan achieves its target price, it would imply 28% upside in a year.

On February 12, 2018, J.P. Morgan cut Kinder Morgan’s target price from $22 to $21. On February 9, Morgan Stanley cut KMI’s price target to $23 from $24.

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Trends in recommendations

As the graph above shows, Kinder Morgan’s mean price target fell from $25.6 in February 2017 to $22.1 currently. 67% of analysts rated KMI a “buy” in February 2017 compared to 55% now. KMI stock is down 20% in the last one-year period.

KMI’s valuation

Kinder Morgan currently trades at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 10.4x, which is lower than its five-year average multiple of 14.3x. Kinder Morgan’s multiple is lower compared to Targa Resources (TRGP) and ONEOK (OKE), which are trading at a forward EV-to-EBITDA multiple of 11.8x and 14.3x, respectively.

Learn more about KMI’s recent price performance in Kinder Morgan Fell for the Fourth Straight Week, Down 5% in 2018.

Next, we’ll discuss the trends in analysts’ recommendations for Targa Resources in a year.

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