On Monday, Citi reiterated its Neutral rating on DT Midstream (NYSE:DTM) with a steady price target of $62.00. The firm anticipates DT Midstream's second-quarter 2024 EBITDA to reach $237 million, surpassing the Street's average estimate of $233 million. Despite a sequential dip due to lower gathering volumes from producer curtailments and seasonal impacts on joint venture pipelines, expectations are set for a partial rebound thanks to the LEAP Phase 2 ramp-up and new interconnections.
DT Midstream is projected to hit the higher end of its 2024 EBITDA guidance range. However, a firm guidance upgrade is not expected until the third quarter of 2024, should the current trend persist. The company is also looking at final investment decisions (FIDs) on several key projects within the next two quarters, with the LEAP Phase 4, CCS, Vector, Nexus, and Utica initiatives all slated for in-service dates between 2025 and 2026, necessitating imminent FIDs.
InvestingPro Insights
DT Midstream's financial health and market performance can be further illuminated by recent data and insights from InvestingPro. With a market capitalization of $6.83 billion and a P/E ratio of 17.06, the company is showing signs of stability. Notably, the company's stock has experienced a significant return over the last year, with a 50.53% increase in total price return. This uptrend is also reflected in the short term, with a 17.33% return over the last three months, indicating a strong performance in the recent period.
InvestingPro Tips suggest that DT Midstream has raised its dividend for three consecutive years, which is a positive indicator for investors seeking steady income. Additionally, the company's stock is trading near its 52-week high, at 97.95% of this threshold, demonstrating investor confidence and market optimism around the stock. For those looking to delve deeper into DT Midstream's potential, there are 6 more InvestingPro Tips available, which could provide valuable insights into making an informed investment decision. To explore these further, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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