Wolfe Research upgraded shares of DT Midstream Inc. to Outperform from Peer Perform, citing the company’s growth prospects in natural gas infrastructure. The research firm set a price target of $145, implying roughly 14% upside from the stock’s closing price of $126.74 on Friday.
DT Midstream, which operates pipelines and gathering systems across the Midwest and Haynesville regions, reported a second-quarter adjusted EBITDA of $305 million, a slight decline of $3 million from the prior quarter. The decrease was attributed to seasonally lower joint-venture pipeline revenue, partially offset by a $11 million gain in the gathering segment driven by higher volumes on the Blue Union system.
The company maintained its quarterly dividend at $0.88 per share. Growth capital spending totaled $86 million in the quarter, while pipeline segment revenue fell by $14 million. DT Midstream also highlighted approximately $300 million in new organic projects reaching final investment decisions, all backed by 20-year utility contracts.
Analysts noted the company’s positioning to serve rising power demand in the Midwest and its exposure to LNG-driven growth in the Haynesville region. DT Midstream reaffirmed its full-year outlook and its projections for early 2027.
The stock has gained 27.5% over the past year, with a market capitalization of $12.93 billion. According to InvestingPro Tips, the Relative Strength Index suggests the shares are in oversold territory.
