Should I Buy HESM? HESM 2026 Analysis

Should You Buy Hess Midstream LP (HESM) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

34.930

1 Day change

-3.08%

52 Week Range

44.140

Analysis Updated At

2026/01/29

Buy now for a beginner long-term investor focused on income and steady compounding. HESM is coming off a dividend increase, delivered an earnings/revenue beat, and is guiding to ~5% annual distribution growth through 2027—strong long-term, shareholder-friendly setup. Near-term, the stock looks a bit stretched technically (overbought), but sentiment and fundamentals still support initiating a position today.

Technical Analysis

Price is in a short-term bullish push: MACD histogram is positive and expanding (momentum improving) and price is trading above the pivot (35.221). However, RSI(6) at ~78.6 signals an overbought condition, meaning upside may be more incremental from here. Key levels: Support S1 ~34.47 (then S2 ~34.01). Resistance R1 ~35.97 has been cleared and the next resistance is R2 ~36.43, close to the current ~36.27—so near-term upside may face supply around 36.4 unless momentum continues.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options positioning is bullish/constructive: open interest put-call ratio at 0.28 indicates call-heavy positioning (risk-on). Volume put-call ratio at 0.51 also leans bullish. Implied volatility (30D) ~28.6 with IV percentile ~74 suggests options are relatively expensive versus much of the past year, often seen ahead of catalysts (e.g., earnings) or after a sharp move; sentiment remains more call-skewed than defensive.

Technical Summary

Sell

Buy

Positive Catalysts

Dividend increase to $0.7641/unit (+1.2% QoQ) reinforces income appeal.
Latest reported quarter beat: GAAP EPS $0.75 (beat by $0.
and revenue $420.9M (beat).
Management target: ~5% annual distribution growth through 2027 supports a long-term total return case.
Hedge fund activity: “Hedge Funds are Buying” with buying amount up ~1799% QoQ—often supportive of medium-term demand.
Upcoming earnings (QDEC
on 2026-02-02 (pre-market) can act as a catalyst if results/guide remain steady.

Neutral/Negative Catalysts

Insider trend is a clear headwind: “Insiders are Selling” with selling amount up ~1944% over the last month (can cap near-term upside).
Short-term technical stretch: RSI is overbought and price is approaching resistance near ~36.
Quant-style pattern outlook provided is negative-biased (model suggests higher probability of mild declines over 1W/1M), which can mean choppier near-term entry.

Financial Performance

Latest quarter provided: 2025/Q3. Revenue rose to $420.9M (+11.2% YoY), net income increased to $97.7M (+66.7% YoY), and EPS grew to $0.75 (+19.1% YoY). This shows strong profitability improvement and solid top-line growth—consistent with a durable midstream cash-flow story that can support ongoing distribution growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No analyst rating or price target change data was provided, so recent trend cannot be quantified. Based on the fundamentals in the feed (earnings/revenue beat, dividend hike, and multi-year distribution growth plan), the typical Wall Street 'pro' view would emphasize stable fee-based cash flows and income growth; the 'con' view would focus on insider selling and the risk of near-term multiple compression after a run-up/overbought technicals.

3 Analyst Rating

Wall Street analysts forecast HESM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HESM is 36.5 USD with a low forecast of 34 USD and a high forecast of 39 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.

0 Buy

3 Hold

0 Sell

Hold

Current: 36.040

Low

Averages

36.5

High

Current: 36.040

Low

Averages

36.5

High

Raymond James

J.R. Weston

Outperform

downgrade

$48 -> $35

AI Analysis

2025-10-24

Reason

Raymond James

J.R. Weston

Price Target

$48 -> $35

AI Analysis

2025-10-24

downgrade

Outperform

Reason

Raymond James analyst J.R. Weston lowered the firm's price target on Hess Midstream LP to $35 from $48 and keeps an Outperform rating on the shares. The firm adjusted targets in the midstream suppliers group ahead of the Q3 reports. Midstream is showing "stability" for investors as strong diesel margins and a consensus view that oil markets are oversupplied have pushed refiners to the center of generalist attention in the energy sector, the analyst tells investors in a research note. Raymond James does not major changes to the group's 2025 outlooks.

Goldman Sachs

Neutral

maintain

$36

2025-09-29

Reason

Goldman Sachs

Price Target

$36

2025-09-29

maintain

Neutral

Reason

Goldman Sachs reinstated coverage of Hess Midstream LP with a Neutral rating and $36 price target. The firm sees the stock as fully valued, noting that growth expectations for the company have been reset to reflect the softer oil outlook and strong contracts limit near-term downside, but it still believes that consensus is \"too high\". Goldman adds that while Hess Midstream's capital return potential is compelling given low capex needs, the range of outcomes for the CVX Bakken review \"offers both upside and downside risks\".

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HESM Should I Buy

HESM Should I Buy

Should You Buy Hess Midstream LP (HESM) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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