DTM Should I Buy
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DT Midstream Inc. (DTM) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and robust growth outlook make it an attractive investment opportunity. While the stock is technically overbought, its long-term growth potential outweighs short-term technical concerns.
The stock is in a bullish trend with moving averages (SMA_5 > SMA_20 > SMA_200) confirming upward momentum. MACD is positive at 0.473, indicating bullish momentum, but RSI at 81.377 signals the stock is overbought. Key resistance levels are at R1: 138.828 and R2: 141.318, while support levels are at S1: 130.768 and S2: 128.278.
Analysts have raised price targets significantly, with Citi, Wells Fargo, UBS, and Jefferies projecting targets between $148 and $156, citing robust growth and a strong backlog.
The company reported a 27.31% YoY revenue increase and a 52.05% YoY net income increase in Q4 2025, indicating strong financial health.
Management commentary highlights growth exceeding a 7% compound annual rate and a substantial opportunity backlog.
Stifel downgraded the stock to Hold, citing valuation concerns with the stock trading at over 14-times 2027 EBITDA estimates.
RSI indicates the stock is overbought, which may suggest limited short-term upside.
DT Midstream reported strong financial results in Q4 2025, with revenue increasing by 27.31% YoY to $317M, net income rising by 52.05% YoY to $111M, and EPS growing by 47.95% YoY to $1.08. The company also achieved a gross margin of 100%. For the full year, revenue grew by 26.7% to $1.243 billion, and net profit reached $441 million.
The majority of analysts maintain a positive outlook on DTM, with multiple firms raising price targets and maintaining Buy or Overweight ratings. Citi, UBS, and Wells Fargo project price targets between $150 and $156, citing strong growth potential and a robust backlog. However, Stifel downgraded the stock to Hold due to valuation concerns, despite raising its price target to $137.
