Bank of America analyst Jean Ann Salisbury has elevated the price target for DT Midstream (DTM, Financial) from $110 to $118 while maintaining a Buy rating. The prospect for gas pipelines is improving despite recent market fluctuations. This year, the company notices expanded activity in the gas midstream sector, largely influenced by policies that simplify infrastructure development in regions like Appalachia. Utilities are also beginning to anticipate the necessity of gas infrastructure extending into the 2030s, showing a greater willingness to invest. Furthermore, the lifting of the LNG permit pause and growing interest from countries aiming to reduce trade deficits add to the positive outlook for gas infrastructure.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for DT Midstream Inc (DTM, Financial) is $106.55 with a high estimate of $118.00 and a low estimate of $89.14. The average target implies an downside of 0.62% from the current price of $107.21. More detailed estimate data can be found on the DT Midstream Inc (DTM) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, DT Midstream Inc's (DTM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DT Midstream Inc (DTM, Financial) in one year is $74.94, suggesting a downside of 30.1% from the current price of $107.21. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DT Midstream Inc (DTM) Summary page.
DTM Key Business Developments
Release Date: April 30, 2025
- Adjusted EBITDA: $280 million, a $45 million increase from the prior quarter.
- Pipeline Segment Results: $39 million higher than the fourth quarter of 2024.
- Gathering Segment Results: $6 million increase from the fourth quarter of 2024.
- Total Gathering Volumes (Haynesville): Averaged 1.67 Bcf per day, an increase from the fourth quarter.
- Total Gathering Volumes (Northeast): Averaged 1.3 Bcf per day, a decrease from the fourth quarter.
- Committed Capital: Approximately $365 million in 2025 and $100 million in 2026.
- Dividend: $0.82 per share, unchanged from the prior quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DT Midstream Inc (DTM, Financial) reaffirmed its 2025 adjusted EBITDA guidance range and 2026 early outlook, indicating confidence in its financial performance.
- The company is successfully integrating newly acquired interstate pipelines, with key integration activities progressing on schedule.
- DT Midstream Inc (DTM) has a $2.3 billion organic growth project backlog, with construction underway on several projects, including the Midwestern Gas Transmission Power Plant lateral.
- The company has no commodity exposure and minimal volume exposure, with 70% of adjusted EBITDA coming from demand-based contracts with strong utility customers.
- DT Midstream Inc (DTM) is well-positioned to benefit from growing LNG demand and utility-scale power generation, particularly in the Gulf Coast and PJM/MISO regions.
Negative Points
- The first quarter of 2025 experienced market volatility, with significant cold weather impacting natural gas prices.
- Adjusted EBITDA is expected to be lower in the second quarter due to seasonality and maintenance activities.
- There was a decrease in gathering volumes in the Northeast, driven by timing of producer activity.
- The company faces potential challenges from tariff announcements, although it expects no material effect due to strategic supplier relationships.
- The broader market uncertainty and potential recession risks could impact future performance, although DT Midstream Inc (DTM) remains confident in its resilience.
