Goldman Sachs Upgrades ONEOK Inc (OKE) to Buy, Sees Economic Moat Generating Further Upside

Goldman Sachs analyst Michael Lapides upgraded ONEOK Inc (NYSE: OKE) from Neutral to Buy with a price target of $81.00 (from $73.00).

The analyst comments "We see additional upside to OKE shares given (1) our estimates are 5% above consensus on average from 2020-2022, (2) we expect robust returns on new NGL pipeline projects (Elk Creek and Arbuckle II) given integration with OKE's own upstream gas processing plants downstream fractionation facilities, with flaring regulation in North Dakota driving increased volumes for OKE, and (3) we expect an inflection in cash flow as new projects come online and capital spend moderates, driving leverage lower, and potentially increasing capital allocation to shareholders."

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 $68.92 yesterday.

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