Jefferies raises DT Midstream stock price target on project outlook

Jefferies has increased its price target on DT Midstream Inc. shares to $150, up from $145, while maintaining a Buy rating on the stock. The firm highlighted the importance of the MIST Phase 1 final investment decision, as well as the potential capacity upside. Analysts at Jefferies pointed out that rising demand for utility and data center gas will support additional projects for the company under the Guardian and NEXUS names.

Despite raising the price target to $150 and reaffirming its Buy rating, DT Midstream is trading close to peer multiples on fiscal year 2030 EBITDA. Furthermore, the stock's current P/E ratio is 26.24, with targets ranging from $121 to $170, indicating a potential upside of 22% from its current level. Investors are primarily focused on the backlog and new final investment decisions, as more regional gas generation announcements continue to come in.

DT Midstream operates natural gas pipeline and gathering systems in the United States. However, the company's stock appears to be overvalued relative to its Fair Value, according to InvestingPro analysis. In its latest earnings report, DT Midstream revealed an adjusted EBITDA of $305 million for the second quarter, a slight decline from the previous quarter.

The company reaffirmed its full-year outlook and reported $300 million in new organic projects, while maintaining its dividend at $0.88 per share. Growth capital spending for the quarter was $86 million, with an expectation of increased spending in the latter half of the year. Wolfe Research upgraded the stock rating to "Outperform" from "Peerperform," citing DT Midstream's recent underperformance as an attractive entry point and setting a price target of $145.

Meanwhile, Goldman Sachs lowered its price target to $121 and retained a Sell rating due to anticipated lower gathering volumes and operational and maintenance costs impacting future EBITDA. Analyst opinions remain mixed, but DT Midstream continues to emphasize stable operations and an expanding project pipeline.