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Analysts have raised their price target for DT Midstream by $13 to $128. They cite the successful Guardian expansion and improved company outlook as key factors behind the upward revision.

Analyst Commentary

Following the recent upward revision of DT Midstream's price target, analysts have shared further insights into the company's current strengths and potential risks in the market.

Bullish Takeaways

• Bullish analysts highlight that the successful open season for the Guardian expansion demonstrates strong market demand and effective execution on strategic initiatives.
• Improved company outlook and operational achievements are seen as key drivers supporting a higher price target and continued growth prospects.
• Analysts point to management's ability to deliver on expansion projects as a positive indicator for future revenue and cash flow potential.
• The updated price target reflects confidence in the company's long-term valuation, supported by visible growth catalysts and a robust business model.

Bearish Takeaways

• Bearish analysts remain cautious about the sustainability of recent execution gains, particularly as new projects move from planning to operational phases.
• Some express concerns about the potential for higher capital expenditure impacting near-term profitability as expansion plans progress.
• There is a note of caution regarding increased competition in the sector, which may affect future pricing power and margins.
• Analysts also mention the risk of regulatory changes that could influence the company's expansion timeline or cost structure.

What's in the News

• DT Midstream announced the successful closure of a binding open season to award expansion capacity on the Guardian Pipeline.
• Capacity was awarded to five shippers, totaling 328,103 Dth per day. The targeted in-service date is November 1, 2028.
• The newly awarded capacity, combined with an earlier expansion in July 2025, brings the total planned expansion to 536,903 Dth per day. This represents a 40 percent increase from the pipeline's current capacity. (Key Developments)

Valuation Changes

• Fair Value: Estimated fair value has risen slightly from $110.15 to $111.46 per share. This reflects a moderate increase in long-term valuation assessments.
• Discount Rate: The applied discount rate has edged down from 7.32 percent to 7.11 percent. This indicates a marginal decrease in perceived risk or cost of capital.
• Revenue Growth: Projected revenue growth has increased modestly from 12.04 percent to 12.22 percent. This suggests improved earnings expectations.
• Net Profit Margin: Net profit margin has inched up from 38.89 percent to 38.99 percent. This signals steady improvement in operational efficiency.
• Future P/E: The future price-to-earnings ratio has dipped slightly from 26.04x to 25.99x. This implies valuations are holding relatively stable despite updated forecasts.