ONEOK Inc (OKE) PT Raised to $83 at BofA Securities, Upgraded to Buy

BofA Securities analyst Chase Mulvehill raised the price target on ONEOK Inc (NYSE: OKE) to $83.00 (from $72.00) while upgrading to a Buy rating (from Neutral).

The analyst comments "We upgrade OKE to Buy from Neutral and raise our PO from $72 to $83. We think the market is underappreciating the synergies and FCF step-up from the merger with MMP. OKE now owns both NGL and refined products pipe systems with pricing power and high FCF conversion. We think the combination adds a conservative $750mm of annualized cost ($150mm) and commercial synergies ($600mm) through YE26, $2.2bn of nominal cash tax savings through ’27, and a lower OKE cost of capital with MMP’s lower beta, demand-pull refined products system."

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