Stifel Sees Opportunity In DT Midstream Pullback: Upgrades Rating On Diversified Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2024
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Source: Benzinga
Analyst Upgrade: Stifel analyst Selman Akyol upgraded DT Midstream, Inc. (DTM) to a Buy rating and raised the price target to $106, citing the recent stock pullback as a buying opportunity and highlighting the company's upcoming natural gas pipeline acquisition which will enhance its market position.
Financial Projections: The acquisition is expected to increase DTM's EBITDA beyond $1 billion and diversify its customer base, with anticipated free cash flow after dividends rising to approximately $240 million by year-end 2025, despite a slight increase in leverage.
Analyst Views on DTM
Wall Street analysts forecast DTM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DTM is 126.86 USD with a low forecast of 114.00 USD and a high forecast of 137.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
4 Buy
2 Hold
1 Sell
Moderate Buy
Current: 121.410
Low
114.00
Averages
126.86
High
137.00
Current: 121.410
Low
114.00
Averages
126.86
High
137.00
About DTM
DT Midstream, Inc. is an owner, operator, and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment, and surface facilities. The Company transports clean natural gas for utilities, power plants, marketers, large industrial customers, and energy producers. Its segments include Pipeline and Gathering. The Pipeline segment owns and operates interstate and intrastate natural gas pipelines, storage systems, and natural gas gathering lateral pipelines. It also has interests in equity method investees that own and operate interstate natural gas pipelines. The segment is engaged in the transportation and storage of natural gas for intermediate and end user customers. The Gathering segment owns and operates gas gathering systems. The segment is engaged in collecting natural gas from points at or near customers’ wells for delivery to plants for treating, to gathering pipelines for further gathering, or to pipelines for transportation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
