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DT Midstream (NYSE:DTM) +0.8% in Wednesday's trading after Barclays upgraded shares to Overweight from Equal Weight with a $59 price target, citing valuation and a positive fundamental outlook for its Haynesville and Northeast assets.
DTM shares have lagged since the company's Q1 EBITDA miss while other midstream companies posting a beat-and-raise quarter, but analyst Marc Solecitto views the light Q1 results "mostly as a function of timing/maintenance impacts during the quarter and continue to have a positive fundamental outlook for DTM's assets with growth on its Haynesville system expected to resume in the back half of the year with the in-service of its Blue Union/LEAP expansion."
Amid recession fears, Solecitto sees the generally defensive nature of DT Midstream's (DTM) assets as a favorable characteristic.
Barclays also said it likes Cheniere Energy (NYSE:LNG), "reflecting secular fundamental tailwinds, attractive valuation, defensive cash flow characteristics amid recession concerns, and visibility for near-term catalysts."
The firm also looks for Enterprise Products Partners (EPD) to post solid Q2 earnings due to a full quarter of Navitas contribution and higher commodity prices, and sees Williams (WMB) as a prime beneficiary of higher Henry Hub gas prices from its upstream JV assets and certain G&P contracts which contain a percentage linked to Henry Hub.
DT Midstream (DTM) reported Q1 GAAP EPS of $0.84 and adjusted EBITDA of $191M.