Morgan Stanley Maintains Equal-Weight on Kinder Morgan, Raises PT to $35.

Morgan Stanley Maintains Equal-Weight on Kinder Morgan, Raises PT to $35.

September 12, 2025

In a recent report, Morgan Stanley has maintained an equal-weight rating on Kinder Morgan, Inc. (KMI), while raising its price target to $35. The update comes amid a period of strong financial performance and growth prospects for the energy infrastructure company.

Kinder Morgan, which operates primarily in North America, has seen significant interest from institutional investors and hedge funds. In the second quarter, Capital Investment Advisors LLC increased its stake in Kinder Morgan by 4.9%, holding approximately $16.31 million in the company's stock Capital Investment Advisors LLC Has $16.31 Million Stock Position in Kinder Morgan, Inc. $KMI^[1]. This follows a series of acquisitions by other major investors, including Nuveen LLC, 59 North Capital Management LP, Goldman Sachs Group Inc., Assenagon Asset Management S.A., and Kingstone Capital Partners Texas LLC, who have collectively added billions of dollars to their positions in Kinder Morgan Capital Investment Advisors LLC Has $16.31 Million Stock Position in Kinder Morgan, Inc. $KMI^[1].

The company's recent financial results have been robust, with Kinder Morgan reporting $0.28 earnings per share for the quarter, meeting analysts' consensus estimates. The firm's revenue was up 13.2% compared to the same quarter last year, reaching $4.04 billion. Additionally, Kinder Morgan has set its FY 2025 guidance at 1.270-1.270 EPS, with analysts predicting an average of 1.25 EPS for the current fiscal year Capital Investment Advisors LLC Has $16.31 Million Stock Position in Kinder Morgan, Inc. $KMI^[1].

Morgan Stanley's analysts noted that Kinder Morgan's strong asset footprint and track record in project delivery have enabled the company to grow its backlog in a competitive environment. UBS has estimated that Kinder Morgan could add $7 billion to $11 billion to its backlog in the next two years, with approximately 10% of the current $9.3 billion backlog expected to come online in H2 2025 Kinder Morgan Sees $7 Billion to $11 Billion in Growth Projects to Add to Its Backlog in Next 2 Years, UBS Says^[2]. This is expected to contribute to higher earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025.

The firm's recent dividend announcement also highlights its commitment to shareholder value. Kinder Morgan declared a quarterly dividend of $0.2925 per share, resulting in an annualized dividend yield of 4.1%. The payout ratio stands at 95.90%, indicating a high level of dividend distribution Capital Investment Advisors LLC Has $16.31 Million Stock Position in Kinder Morgan, Inc. $KMI^[1].

Despite the positive outlook, Morgan Stanley's equal-weight rating suggests a cautious approach. The firm's analysts have highlighted potential risks, such as regulatory changes and geopolitical uncertainties that could impact the energy sector. However, the company's strong balance sheet and strategic position in the natural gas market provide a buffer against these risks.

In conclusion, Morgan Stanley's updated rating and price target reflect a balanced view of Kinder Morgan's current performance and future prospects. While the company continues to face challenges in the energy sector, its strong fundamentals and growth opportunities make it an attractive investment for many investors.