Goldman Sachs Rates ONEOK Inc. (OKE) a 'Neutral' Amid Acquisitions Boost

ONEOK, Inc. (NYSE:OKE) is one of the most profitable energy stocks to buy right now. On September 30, Goldman Sachs resumed coverage of the stock with a ‘Neutral’ rating and a $75 price target. The coverage comes on the company expanding its footprint through acquisitions.

The company has expanded its exposure to Permian oil while also enhancing its refined product pipelines through existing operations in the Bakken, G&P Mid-Con, and Gulf Coast NGLs, achieved through strategic deals with Magellan, EnLink, and Medallion.

According to the investment bank, the acquisitions have added scale and earnings stability and are expected to bolster ONEOK’s growth prospects. Consequently, the company’s valuation will decline from a premium to a modest discount compared to peers. Likewise, Goldman Sachs believes the recent price pullback in the stock could be nearing an end.

ONEOK, Inc. (NYSE:OKE) is a major U.S. energy infrastructure company that operates an extensive network of pipelines and related assets to transport natural gas, natural gas liquids (NGLs), refined products, and crude oil from supply points to demand centers.

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Disclosure: None. This article is originally published at Insider Monkey.