JPMorgan Cuts Oneok Target to $84; Morgan Stanley, UBS Trim to $104, $103
JPMorgan reduced Oneok’s 12-month price target to $84 from $87 and downgraded its rating to Neutral, citing soft macroeconomic fundamentals. Morgan Stanley trimmed its target to $104 from $107 and UBS cut to $103 from $114, while Oneok raised its quarterly dividend 4% to $1.07 per share (4.81% yield).
1. JPMorgan Reduces Target and Rating
JPMorgan reduced its 12-month price target on Oneok to $84 from $87 and downgraded its rating to Neutral, citing soft macroeconomic fundamentals that could weigh on natural gas demand. The firm noted that a sustained rebound in oil prices would be necessary to restore stronger investor sentiment in the stock.
2. Morgan Stanley and UBS Trim Targets
Morgan Stanley lowered its price target to $104 from $107 while maintaining an Overweight rating, and UBS cut its target to $103 from $114 but kept a Buy rating. Both firms signaled confidence in Oneok’s midstream operations despite short-term market headwinds.
3. Dividend Hike and Yield Implications
Oneok announced a 4% increase in its quarterly dividend to $1.07 per share, raising the annual payout to $4.28 and yielding 4.81%. This represents the company’s commitment to returning cash to shareholders and could support share price stability.
4. Analyst Consensus and Upside Potential
Analyst coverage remains moderately bullish, with 14 of 24 firms holding Buy ratings and 10 recommending Hold. The median target is $83, implying limited upside, while the highest estimate of $108 suggests a 41% potential gain if achieved.