DT Midstream cut at Goldman as valuation looks full after re-rating

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DT Midstream (DTM -0.9%) pulls back from a 52-week high as Goldman Sachs downgrades shares to Neutral from Buy with a $58 price target, reflecting a less compelling opportunity following relative outperformance for the stock and a strong re-rating since its mid-2021 spinout.

Goldman's John Mackay still sees DTM as the best-positioned midstream company to benefit from ongoing strong growth in the Haynesville shale, but EBITDA likely lags the basin overall given its customer mix and the addition of lower-rate contracts in the near-term.

Potential remains for DTM to surprise to the upside, with better Haynesville earnings flow-through and/or material contributions from low-carbon investments, but for now Goldman sees less compelling upside for the stock.

DT Midstream recently raised its quarterly dividend by 6.7% and announced a 125K-unit buyback program.

Comments

[$23,000,000,000,000]

Big favorite of mine. Trading at 52 with 58 target and 5% div. I'll add a little more.

[Archman Investor]

Uh oh.
Goldman just realized the missed another one.

[Sound Investor]

Extremely well positioned mid stream player. Same management style as its former parent DTE which is make conservative forecast, beat that number, repeat.