Scotiabank Raises PT on Kinder Morgan (KMI), Maintains Sector Perform Rating

Kinder Morgan, Inc. (NYSE:KMI) is one of the 10 AI stocks that Jim Cramer and analysts are watching. On June 5, Scotiabank raised its price target on KMI shares to $27 from $26 and maintained a Sector Perform rating. The firm is updating its target valuation year to 2027 and has introduced estimates for 2028 for U.S. Midstream sector stocks. The analyst noted that units are still expected to trade within a range, with few catalysts anticipated in the near term.

On June 4, BofA raised its price target on KMI to $32 from $30 and reiterated a Buy rating. The analyst stated that the outlook for gas pipelines “continues to brighten” despite recent market volatility. Kinder Morgan and DT Midstream remain the firm’s top midstream picks.

The firm noted increased activity across the gas midstream space this year, citing policy changes under the Trump administration that have eased pipeline development, especially in Appalachia. Utilities are expected to require gas infrastructure through the 2030s and are showing greater willingness to invest. Additional factors include the lifting of the LNG permit pause and interest from countries aiming to narrow trade deficits.

Moreover, on June 6, when a caller asked Cramer about the company, he said, “Kinder Morgan’s good. Kinder Morgan’s good. You know… The company got it together. Anything in the pipeline is just working.”

Kinder Morgan (NYSE:KMI) operates energy infrastructure assets that support the transport, storage, processing, and handling of natural gas, petroleum products, and carbon dioxide. The company also owns and operates facilities related to liquefied natural gas, including gasification, liquefaction, and storage. During the company’s Q1 2025 earnings call, management reiterated their positive outlook on long-term natural gas demand, both in the U.S. and globally and noted that this view has gained broader acceptance among investors and analysts over the past year, especially with growing interest in natural gas as a fuel source for AI and data centers.

Furthermore, management confirmed that they are actively working to supply upcoming data centers. Chief Executive Officer Kimberly Allen Dang mentioned that roughly 70% of new backlog additions in the quarter were tied to power demand, which may be connected to data centers. She mentioned that most of the current activity linked to data centers has come through regulated utilities.

While we acknowledge the potential of KMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.