Morgan Stanley Downgrades ONEOK Inc (OKE) to Equalweight
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
(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.
Shares of ONEOK Inc closed at $51.11 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Cowen Downgrades Under Armour, Inc. (UA) to Market Perform
- AK Steel (AKS) PT, Estimates Raised at Jefferies
- Imperial Capital Raises Price Target on Spirit Airlines (SAVE); Cuts 4Q Estimates
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesMorgan Stanley, Bakken Formation
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!