In a recent review, Scotiabank enhanced its target share price for Kinder Morgan Inc. (NYSE: KMI) to $30.00 from a previous $29.00, while retaining its Sector Perform designation on the energy infrastructure giant. The firm’s updated target closely approaches the stock's immediate market value of $29.69, which itself hovers near a 52-week high of $31.30. Analysis from InvestingPro reveals that the stock’s relative strength index (RSI) may indicate an overbought market condition.
This upward revision follows Scotiabank's commendation of Kinder Morgan's "solid operational results." The energy company showcased strong contributions across all segments of its natural gas system, supported by margin performance that exceeded expectations in the recent quarter. Over the trailing twelve months, the company posted an EBITDA of $6.86 billion, accompanied by an 8.35% growth in revenue reaching $16.42 billion.
Additionally, Scotiabank drew attention to positive strides in Kinder Morgan's major infrastructure developments. Approvals from the Federal Energy Regulatory Commission (FERC) for two critical projects, MSX and SSE4, have progressed more swiftly than initially anticipated. This advancement implies a potential acceleration of the MSX project's operational start toward late Q2 2028, ahead of the previously projected late Q4 2028 timeline.
However, financial metrics reveal that Kinder Morgan currently trades at a high price-to-earnings (P/E) ratio of 23.4 relative to its near-term earnings growth prospects, with a price-to-earnings growth (PEG) ratio of 3.35. This may reflect investor optimism tempered by valuation considerations.
The company’s sanctioned project backlog reports a substantial value near $10 billion, with an additional $10 billion worth of potential projects under active pursuit. This marks a continuous quarter-over-quarter increase in net backlog. According to InvestingPro metrics, Kinder Morgan maintains a favorable overall financial health score of 2.61, classified as "GOOD."
On January 22, 2026, amidst the approach of a winter storm, Kinder Morgan’s stock appreciated by 3.9%. While the company does not expect the current storm to generate impacts of the scale experienced during Winter Storm Uri, some positive influence on earnings is anticipated. Scotiabank projects first-quarter 2026 EBITDA of $2.27 billion. The stock has yielded a 13.17% return over the preceding six months and currently offers a yield of 3.94% on dividends.
InvestingPro’s assessment suggests the stock is modestly overvalued relative to its Fair Value, with analyst price targets spanning from $26 to $38. For investors seeking enhanced analytical insights, the platform offers a comprehensive Pro Research Report covering Kinder Morgan alongside over 1,400 U.S. equities.
Separately, Kinder Morgan disclosed strong fourth-quarter 2025 financial results. The company reported adjusted earnings per share of $0.39, surpassing the anticipated $0.36, alongside revenue totaling $4.51 billion, outpacing estimates of $4.32 billion. This robust performance was particularly driven by its natural gas business segment. In reaction, TD Cowen lifted its price target for the stock from $34.00 to $35.00 while reaffirming a Buy rating, citing the natural gas segment’s solid EBITDA performance in Q4. These developments underscore a positive outlook for Kinder Morgan as per TD Cowen’s analysis.