DT Midstream jumps as Morgan Stanley upgrades to Equalweight, raises target to $165
DT Midstream shares rose after Morgan Stanley upgraded the stock to Equalweight from Underweight and lifted its price target to $165 from $139. The call highlighted improving growth visibility tied to the company’s natural-gas pipeline footprint and its 2026 EBITDA outlook around a $1.19 billion midpoint.
1. What’s driving the move
DT Midstream (DTM) is moving higher today after Morgan Stanley upgraded the stock to Equalweight from Underweight and increased its price target to $165 from $139. The upgrade pointed to stronger confidence in the company’s growth trajectory, supported by its natural gas pipeline exposure and management’s 2026 EBITDA outlook near $1.19 billion at the midpoint. (ng.investing.com)
2. Why the upgrade matters for investors
A rating change from Underweight to Equalweight often forces a re-evaluation among institutional holders that benchmark sector allocations, particularly when paired with a meaningful target increase. The new target implies Wall Street sees additional upside potential even after DT Midstream’s strong run over the past year, reinforcing the idea that the market is willing to pay a premium for contracted, fee-based midstream cash flows when growth visibility improves. (ng.investing.com)
3. What to watch next
The next major catalyst is DT Midstream’s upcoming earnings report, scheduled for May 5, 2026. With the stock reacting to a forward-looking upgrade, investors will focus on any confirmation of 2026 guidance, progress on committed capital projects, and signals on distributable cash flow strength and dividend sustainability. (investing.com)