Freedom Capital Markets has revised its rating on Kinder Morgan (NYSE:KMI) from Sell to Hold and assigned a price target of $32.00. At the time of the move, Kinder Morgan shares were trading at $29.91, close to their 52-week high of $30.18. The stock carries a price-to-earnings ratio of 21.7, which InvestingPro data indicates is high relative to near-term earnings growth.
The broker's upgrade follows the company’s fourth-quarter 2025 performance, which exceeded consensus adjusted earnings-per-share estimates by 8.3%, according to Freedom Capital Markets analyst Sergey Pigarev. Management’s quarter was supported by typical seasonal demand increases, firmer natural gas prices and expanded U.S. liquefied natural gas (LNG) exports during the period.
Freedom Capital Markets also noted improvements to Kinder Morgan’s balance sheet, pointing to a reduction in net debt and subsequent credit-rating upgrades. The company continues to offer a 3.95% dividend yield and has paid dividends for 16 consecutive years while increasing them for eight straight years.
Looking ahead, the research firm expects a robust first quarter of 2026 driven by elevated seasonal gas demand. Despite that near-term strength, Freedom Capital Markets believes KMI shares are currently trading near fair value and that upside from current levels is likely to be limited. InvestingPro analysis is cited as supporting this view, with additional detail available in its Pro Research Report.
Separate company-reported results corroborated the positive operating picture. Kinder Morgan disclosed adjusted earnings per share of $0.39 for the fourth quarter of 2025, ahead of the $0.36 consensus. Revenue during the quarter was $4.51 billion, exceeding the anticipated $4.32 billion. Those figures reflect solid operational delivery and contributed to improved investor sentiment.
Other analysts have reacted to the quarterly results as well. TD Cowen increased its price target for Kinder Morgan from $34 to $35 and maintained a Buy rating, citing a favorable EBITDA outcome in the natural gas segment. Scotiabank raised its price target from $29 to $30, pointing to solid operational results and margins that outperformed expectations. Both firms specifically flagged contributions from Kinder Morgan’s gas system as an important driver of performance.
In sum, the firm upgrade and analyst target adjustments signal growing confidence in the company’s operating results and financial position, while Freedom Capital Markets’ Hold rating underscores its view that valuation now constrains near-term upside. The company’s exposure to natural gas dynamics and LNG export growth, together with recent balance-sheet improvements, remain central to its outlook.