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Wall Street Analysts See a 30% Upside for Kinder Morgan

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Nov. 20 2020, Updated 4:59 p.m. ET

Analysts’ ratings for KMI

On April 17, 2018, Barclays cut its target price for Kinder Morgan (KMI) from $23 to $20. According to Reuters, of the analysts covering Kinder Morgan, 62% recommended “buy,” and 38% recommended “hold.” Analyst’s mean price target for KMI is $20.90, and KMI is trading at $16.17, implying a potential 30% return in a year.

The above graph shows analysts’ recommendations and mean price targets for Kinder Morgan over the last year. Kinder Morgan has fallen ~14% so far in 2018.

In comparison, 61% of the analysts surveyed by Reuters covering Magellan Midstream Partners (MMP) recommended “buy.” All of the surveyed analysts covering Enterprise Products Partners (EPD) recommended “buy,” and 58% of surveyed analysts rated Plains All American Pipeline (PAA) as “buy.”

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Update on key projects

Construction continues on Kinder Morgan’s $2 billion Elba liquefaction project. The first four liquefaction units of the project have already been delivered. The project, backed by a long-term contract with Shell (RDS.A), is expected to be completed by mid-2019.

In 1Q18, Kinder Morgan also began work on its Gulf Coast Express pipeline, which is expected to become operational in late 2019. KMI is set to own a 50% interest in the project, with DCP Midstream (DCP) and Targa Resources (TRGP) each owning a 25% interest. Kinder Morgan’s Utopia Pipeline project began service in January 2018.

Uncertainty continues over Kinder Morgan Canada’s (KML.TO) Trans Mountain expansion project. To learn more, read KMI’s Trans Mountain Expansion Project: Uncertainty Continues and What’s Next for Kinder Morgan’s Trans Mountain Expansion?

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