Morgan Stanley Downgrades ONEOK Inc (OKE) to Equalweight

October 4, 2016 6:56 AM EDT
Get Alerts OKE Hot Sheet
Price: $50.63 -0.55%

Rating Summary:
    3 Buy, 12 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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(Updated 1:20 pm)

Morgan Stanley downgraded ONEOK Inc (NYSE: OKE) from Overweight to Equalweight with a price target of $50.00 (from $48.00). Analyst Tom Abrams said the downgrade was due to strong year-to-date performance.

"OKE has outperformed this year relative to our coverage as well as to OKS as OKE recovered from a valuation dislocation earlier in the year. The fundamentals of the firm remain healthy, and we are optimistic about the coming NGL cycle in 2018-20 for ONEOK. However, while we have pushed valuation slightly higher, valuation on nearer-term cash flows limits upside. Increasing risks of headwinds in the Bakken may impact the margin trajectory in 2017, and the NGL cycle may be slowed by inventories and export headwinds. A slight decrease in 2017 estimates and a slight increase in multiples to reflect continuing financial strength yields a price target of $50, up from $48," said Abrams.

For an analyst ratings summary and ratings history on ONEOK Inc click here. For more ratings news on ONEOK Inc click here.

Shares of ONEOK Inc closed at $51.11 yesterday.

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