Goldman Sachs cuts DT Midstream stock price target on project timing
Goldman Sachs reduced its price target for DT Midstream (NYSE:DTM) to $121 from $127, maintaining a Sell rating. The stock is currently trading at $126.55, which is considered overvalued relative to its Fair Value estimate. Goldman expects Q3 2026 EBITDA of $300 million, in line with consensus. Full-year 2026 EBITDA is forecasted at $1,221 million, slightly above consensus. The firm noted a 13% stock decline over the past three months, reflecting growth timing concerns.
How this was made
The 30-second read
Why it matters
The downgrade may trigger short-term selling pressure, but competing analyst upgrades could create a split view.
Market read
Analyst target cut on DT Midstream provides a fresh bearish signal for the stock and may influence peer midstream equities.
What to watch
Recent FID completions on $300 M organic projects could improve cash flow beyond current estimates.
Background
Goldman Sachs' coverage change follows DT Midstream's Q2 results and project updates, highlighting valuation concerns.
Ticker impact
Goldman Sachs lowered its price target on DT Midstream to $121 and kept a Sell rating, citing overvaluation and slower project timing.
likely pressure as investors price in the lower target and slower growth expectations
Target reduction from $127 to $121 signals a bearish view; the stock is already near the prior target, so a pullback is plausible.
Market effects
May weigh on other midstream and natural gas transmission stocks as analysts reassess project timing.
Limited to U.S. energy sector, no broader regional effect.
Low global impact; primarily a U.S. midstream company.
Counterpoint
Wolfe Research upgraded DTM to Outperform with a $145 target, indicating potential upside if projects accelerate.
Key entities
- AnalystGoldman Sachs
Reduced DTM price target to $121, maintaining Sell rating.
- AnalystWolfe Research
Upgraded DTM to Outperform with a $145 price target.
