Update shared on 30 Nov 2025
Fair value Increased 1.89%Analysts have increased their price target on DT Midstream by $10.23, citing strong results from the Guardian expansion and an improved growth outlook.
Analyst Commentary
Analysts have provided updated commentary in light of DT Midstream's recent performance and revised price targets. Their perspectives reflect both optimism regarding the company’s growth trajectory and recognition of areas that could warrant caution.
Bullish Takeaways
- Bullish analysts highlight the increased price target as an indicator of heightened confidence in the company's valuation, driven by stronger execution and outlook.
- The successful open season for the Guardian expansion is viewed as a major catalyst, supporting the case for continued volume growth and long-term revenue visibility.
- Recent project developments confirm that DT Midstream is executing well on strategic growth initiatives. This provides reassuring signals on capital allocation and operational discipline.
- The company’s ability to secure new business and deliver on guidance is expected to strengthen investor sentiment. This may contribute positively to future market positioning.
Bearish Takeaways
- Bearish analysts remain mindful of project-related risks, including potential delays or cost overruns that could pressure future earnings and returns on investment.
- There is some caution about the sustainability of current growth rates, particularly if incremental demand for expanded capacity does not materialize as projected.
- Concerns persist regarding the broader competitive environment and regulatory backdrop. These factors could impact the company’s ability to maintain its current growth momentum.
What's in the News
- DT Midstream closed a successful binding open season to award additional capacity on its Guardian Pipeline. The company secured commitments from five shippers for a total of 328,103 Dth per day (Key Developments).
- The new commitments, combined with previous awards, bring the total expansion capacity on Guardian to 536,903 Dth per day. This represents about a 40% increase over current capacity (Key Developments).
- The anticipated in-service date for the expanded Guardian Pipeline capacity is November 1, 2028 (Key Developments).
Valuation Changes
- Fair Value has risen slightly from $118 to $120.23, reflecting a modest upward adjustment in long-term estimates.
- Discount Rate is virtually unchanged and has decreased marginally from 6.96% to 6.96%.
- Revenue Growth projections have increased slightly from 10.05% to 10.06%.
- Net Profit Margin has edged down marginally from 36.12% to 36.11%.
- Future P/E ratio has fallen significantly from 29.60x to 26.52x, which suggests improved earnings expectations in relation to the share price.
Disclaimer
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