7 Sep

Among KMI, OKE, and WMB, Which Stock Do Analysts Recommend?

WRITTEN BY Rekha Khandelwal, CFA

Analysts’ recommendations

Of the three midstream companies we’re discussing in this series, Kinder Morgan (KMI) has the most “buy” recommendations from analysts. Of the 20 analysts surveyed by Reuters covering Kinder Morgan, 75%—or 15 analysts—have rated the stock as a “buy.”

In comparison, 74% of analysts have rated Williams Companies (WMB) as a “buy,” while only 47% have rated ONEOK (OKE) as a “buy.”

Among KMI, OKE, and WMB, Which Stock Do Analysts Recommend?

The graph above compares analysts’ recommendations for the three stocks under review in this series. As the graph shows, none of the stocks have “sell” recommendations from analysts. A total of 53% of analysts have rated ONEOK as a “hold.”

Upside potential

Based on the mean price target provided by the surveyed analysts, Kinder Morgan has the best upside potential among the three midstream stocks under review. The mean price target for Kinder Morgan is $21.3, which implies an upside potential of 20% from its current price of $17.79.

In comparison, based on their respective mean price targets, Williams Companies has an upside potential of 16%, and ONEOK has an upside potential of 10%. The mean price targets for Williams Companies and ONEOK are $34.2 and $72.5, respectively.

Learn what institutional investors did with their KMI, WMB, and OKE holdings in the second quarter in How Institutional Investors Viewed Top Midstream Companies in Q2.

Let’s summarize our discussion in the next and final part of this series.

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