DT Midstream, Inc. (NYSE:DTM) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in DT Midstream, Inc. (NYSE:DTM) had a good week, as its shares rose 3.2% to close at US$90.15 following the release of its quarterly results. It was a pretty mixed result, with revenues beating expectations to hit US$248m. Statutory earnings fell 3.0% short of analyst forecasts, reaching US$0.90 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for DT Midstream

After the latest results, the seven analysts covering DT Midstream are now predicting revenues of US$1.06b in 2025. If met, this would reflect a decent 9.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.6% to US$4.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.06b and earnings per share (EPS) of US$4.39 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.2% to US$84.34despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of DT Midstream's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on DT Midstream, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$66.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of DT Midstream'shistorical trends, as the 7.1% annualised revenue growth to the end of 2025 is roughly in line with the 8.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.8% annually. So it's pretty clear that DT Midstream is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DT Midstream going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for DT Midstream that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.