Capital One initiates coverage on US midstream companies, sees favorable tailwinds
XLE•Capital One sees favorable tailwinds for US midstream stocks
Capital One Securities initiates coverage on US midstream companies and says the Middle East conflict has put a spotlight on the relative safety and security of US infrastructure.
The brokerage adds that several favorable industry tailwinds remain in place and believes investors should buy any material pullback in the stocks.
“With Permian egress coming online, we expect fewer concerns around curtailments and regional pricing near-term, although issues could resurface as early as 2028,” Capital One Securities said.
The brokerage says inventory depth and quality, peak production timing, gas-to-oil ratios, improved recoveries and new horizons will remain key topics going forward.
Capital One Securities initiates coverage on the following companies:
| Company name | PT | Rating | Upside/downside to stock's last close |
|---|---|---|---|
| Enterprise Products Partners | $42 | Equalweight | 9.2% upside |
| Energy Transfer | $26 | Overweight | 24.4% upside |
| Kinder Morgan | $36 | Equalweight | 13.4% upside |
| ONEOK | $110 | Overweight | 19.9% upside |
| Williams Companies | $92 | Overweight | 28.4% upside |
