Citi Reiterates Neutral Rating on DT Midstream (DTM)

Citi analyst Spiro Dounis reiterated a Neutral rating and $62.00 price target on DT Midstream (NYSE: DTM).

The analyst comments "We update estimates ahead of earnings and expect 2Q24 EBITDA of $237mm, above Street mean of $233mm. We expect lower gathering volumes from producer curtailments and JV pipe seasonality to drive the sequential decline, consistent with comments pointing to lower 2Q/3Q. That said, we expect LEAP Ph2 ramping and new inter-connects to partially offset. We see DTM trending to the upper-end of the ’24 EBITDA guidance range, but don’t expect a firm guidance upgrade until 3Q24 if the trend continues. On projects, we expect FIDs over the next two quarters. Specifically, LEAP Phase 4, CCS, Vector, Nexus, and Utica projects all have ’25-’26 in-service dates that likely require FID soon. Data center commercialization likely remains nascent, though we believe DTM is very active on this front. While more projects could be added to the backlog, we expect mgmt to continue to target spending within cash flows and guided ranges."

For an analyst ratings summary and ratings history on DT Midstream click here. For more ratings news on DT Midstream click here.

Shares of DT Midstream closed at $71.03 yesterday.

You May Also Be Interested In