ONEOK (NYSE:OKE) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised ONEOK’s price target from $95 to $106, implying 10.29% potential upside, while maintaining a neutral rating. The broader analyst consensus is “Moderate Buy,” with an average target of $93.12.
• ONEOK reported quarterly EPS of $1.53, beating estimates of $1.46, while revenue reached $12.05 billion versus expectations of $8.95 billion. Shares opened at $96.11, near their 52-week high of $97.90.
• ONEOK agreed to acquire Brazos Midstream’s Permian assets for $4.425 billion, a deal expected to more than double Midland Basin processing capacity and support earnings growth. Apollo’s $9 billion minority investment will help fund the transaction and debt repayment, potentially reducing leverage to about 3.25 times EBITDA.

ONEOK (NYSE:OKE - Get Free Report) had its price objective hoisted by research analysts at JPMorgan Chase & Co. from $95.00 to $106.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the utilities provider's stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 10.29% from the company's previous close.

Several other brokerages have also issued reports on OKE. Wall Street Zen upgraded shares of ONEOK from a "sell" rating to a "hold" rating in a research note on Sunday, August 9th. Royal Bank Of Canada increased their price objective on ONEOK from $84.00 to $90.00 and gave the company a "sector perform" rating in a report on Tuesday, July 21st. TD Cowen raised their target price on ONEOK from $85.00 to $90.00 and gave the stock a "hold" rating in a research report on Thursday, July 16th. Morgan Stanley raised their target price on ONEOK from $103.00 to $105.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 18th. Finally, US Capital Advisors cut ONEOK from a "strong-buy" rating to a "moderate buy" rating in a research report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $93.12.

ONEOK Stock Up 1.4%

OKE stock opened at $96.11 on Tuesday. The stock's 50 day simple moving average is $91.09 and its 200 day simple moving average is $88.84. The company has a market cap of $60.58 billion, a P/E ratio of 16.57, a price-to-earnings-growth ratio of 2.64 and a beta of 0.73. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.59 and a current ratio of 0.74. ONEOK has a fifty-two week low of $64.02 and a fifty-two week high of $97.90.

ONEOK (NYSE:OKE - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The utilities provider reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.46 by $0.07. ONEOK had a net margin of 9.29% and a return on equity of 16.41%. The business had revenue of $12.05 billion for the quarter, compared to analysts' expectations of $8.95 billion. During the same quarter last year, the firm earned $1.34 EPS. ONEOK has set its FY 2026 guidance at 5.680-5.680 EPS. On average, research analysts expect that ONEOK will post 5.84 earnings per share for the current fiscal year.

Institutional Trading of ONEOK

Several institutional investors and hedge funds have recently bought and sold shares of OKE. Alternative Investment Advisors LLC. increased its stake in ONEOK by 1.6% in the 2nd quarter. Alternative Investment Advisors LLC. now owns 13,199 shares of the utilities provider's stock worth $1,148,000 after acquiring an additional 206 shares during the last quarter. Corient Private Wealth LP raised its stake in ONEOK by 6.1% in the second quarter. Corient Private Wealth LP now owns 200,232 shares of the utilities provider's stock valued at $17,408,000 after purchasing an additional 11,533 shares in the last quarter. Amundi lifted its position in ONEOK by 7.0% during the second quarter. Amundi now owns 4,443,388 shares of the utilities provider's stock valued at $386,308,000 after purchasing an additional 289,297 shares during the last quarter. First Eagle Investment Management LLC grew its stake in ONEOK by 1.3% in the 2nd quarter. First Eagle Investment Management LLC now owns 11,834,827 shares of the utilities provider's stock worth $1,028,920,000 after buying an additional 155,652 shares in the last quarter. Finally, California State Teachers Retirement System increased its holdings in shares of ONEOK by 6,935.8% in the 2nd quarter. California State Teachers Retirement System now owns 119,843,399 shares of the utilities provider's stock worth $10,419,185,000 after buying an additional 118,140,062 shares during the last quarter. 69.13% of the stock is currently owned by hedge funds and other institutional investors.

ONEOK News Roundup

Here are the key news stories impacting ONEOK this week:

• Positive Sentiment: ONEOK agreed to acquire Brazos Midstream’s Permian Midland Basin natural-gas gathering and processing assets for $4.425 billion in cash. The transaction is expected to more than double ONEOK’s Midland Basin processing capacity, expand its presence in a high-growth region and be immediately accretive to earnings and free cash flow per share. ONEOK to Acquire Brazos Midstream’s Permian Midland Basin Assets
• Positive Sentiment: The acquisition will be supported by a $9 billion nonvoting minority equity investment from Apollo. ONEOK plans to use approximately $5 billion of the proceeds to repay debt, reducing leverage to about 3.25 times debt to EBITDA. Management said the improved balance sheet should enhance flexibility for organic growth, potential dividend increases and share repurchases, while avoiding common-stock issuance. ONEOK’s $4.4 Billion Deal Comes With a $9 Billion Twist
• Positive Sentiment: Management expects the Brazos transaction to support the high end of its mid- to high-single-digit adjusted EBITDA growth target over the next five to seven years. The deal values the assets at roughly 7.5 times estimated 2027 EBITDA, including anticipated synergies, and 6.0 times estimated 2028 EBITDA. OKE Plans to Expand Permian Presence With Brazos Midland Acquisition
• Neutral Sentiment: ONEOK also launched cash tender offers covering up to $2 billion of outstanding notes as part of a broader $5 billion debt-repayment plan. The restructuring should lower interest and refinancing risk, although Apollo’s investment will alter ONEOK’s capital structure and governance arrangements. ONEOK Announces Cash Tender Offers
• Neutral Sentiment: Commentary also highlights ONEOK’s substantial multiyear share-price gains and cash-flow appeal, suggesting the stock remains supported by its midstream business and dividend profile but may no longer be an unambiguously cheap investment at current valuation levels. ONEOK Stock Still Looks Like a Bargain on Cash Flow

About ONEOK

ONEOK, Inc NYSE: OKE is a publicly traded midstream energy company headquartered in Tulsa, Oklahoma. The company owns and operates a portfolio of natural gas and natural gas liquids (NGL) pipelines, processing facilities, fractionators and storage and terminal assets. Its operations are focused on gathering, processing, transporting, fractionating and marketing NGLs and interstate natural gas, providing critical infrastructure that connects hydrocarbon production to refineries, petrochemical plants and other end markets.

ONEOK's asset base includes pipeline systems and processing plants that move and condition natural gas, along with infrastructure for the transportation, storage and fractionation of NGLs such as ethane, propane and butane.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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