ONEOK Inc (OKE) PT Lowered to $92 at Scotiabank

Scotiabank analyst Holly Stewart lowered the price target on ONEOK Inc (NYSE: OKE) to $92.00 (from $93.00) while maintaining a Sector Outperform rating.

The analyst commented: "OKE shares also remain constrained and range-bound after experiencing sharp declines around Liberation Day/OPEC+ announcements, again despite company commentary around the FY25 guide and its shaping as well as noting synergy expectations in FY25 are largely independent of production growth. What’s more, OKE noted on its 1Q call that April volumes rebounded well coming out of the traditional 1Q seasonality. We expect a continued focus on synergies, particularly on the commercial side and look for the company to outline examples around some of the more independent synergies mentioned. As we have previously stated, we see OKE as an execution story at present, warranted or not, and expect shares to respond well so long as the company does what it said it would do. On the quarter, we expect a seasonal rebound in volumes as the company alluded to on its 1Q call with most areas up sequentially. The primary drivers of our slight decrease to 2Q estimates are commodity price impacts as well as the exclusion of some one-time items in 1Q not carried into 2Q. We look for continued discussion around producer customer plans especially in certain less-discussed basins such as the MidCon. There is also likely to be another reminder to the shaping of synergies contribution for this year, with reiteration of a back-half-weighted set-up."

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