Barclays upgrades Kinder Morgan on natural gas tailwinds

Investing.com -- Barclays upgraded Kinder Morgan Inc (NYSE: KMI) to Overweight on structural tailwinds in natural gas demand and the company's strong infrastructure position.

“We view KMI as poised to benefit from a constructive fundamental outlook for natural gas, with critical infrastructure assets largely backed by take-or-pay/fee-based contracts across multiple commodity value chains and regions,” analyst at Barclays said.

The firm raised its price target to $31, highlighting KMI’s key role in LNG feedgas supply and broader natural gas infrastructure expansion.

The bank noted that Kinder Morgan has lagged peers in 2025 despite its stable fee-based business model and recent commercial progress.

Barclays expects the valuation gap between Kinder Morgan and competitors like Williams Companies (NYSE: WMB) to narrow as Kinder Morgan benefits from rising power and industrial gas demand, exports to Mexico, and LNG growth.

Kinder Morgan has sanctioned over 5 billion cubic feet per day of new natural gas infrastructure projects, including Trident (NSE:TRIE), positioning it ahead of peers in recent project approvals.

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