Kinetik Holdings, Inc. (KNTK) PT Raised to $70 at Mizuho

Mizuho analyst Gabriel Moreen raised the price target on Kinetik Holdings, Inc. (NYSE: KNTK) to $70.00 (from $64.00) while maintaining a Outperform rating.

The analyst commented: "We believe KNTK's highly visible growth outlook is a differentiator among Midstream peers and is less dependent on whether the AI/data center narrative holds. In our view, KNTK's 'supply-side' torque and series of bolt-on transactions in the Northern Delaware make it well-equipped to deliver on a ‾10-12% adj EBITDA CAGR soft target through FY27. We like that KNTK's forecasted adj EBITDA growth seems attainable even when excluding potential major sources of uplift, such as NGL pipeline recontracting in FY27/28. For that reason we argue KNTK's equity may still be undervalued despite its FY24 re-rate. Given the growth outlook, we believe its current EV/EBITDA multiple (10.3x EV/'27 EBITDA) may be less demanding than it appears. We reiterate our Outperform rating and raise estimates, resulting in a $70 PT."

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