KNTK - 'Pure-play Permian powerhouse' Kinetik Holdings started at Buy at Mizuho

Kinetik Holdings (NASDAQ:KNTK) is initiated with a Buy rating and $76 price target at Mizuho on Tuesday, viewing the "Permian pure-play powerhouse" as exceptional within its midstream coverage, offering some of the highest exposure to the Permian Basin. Mizuho's Gabriel Moreen says Kinetik's (KNTK) combination with Altus Midstream should enable it to grow volumes in the Delaware Basin portion of the Permian with exceptional capital efficiency as it routes natural gas flows to Altus' legacy underutilized natural gas processing assets. Kinetik (KNTK) investors can benefit through the company seeing increased utilization at its gathering and processing assets, and via expansions at several of its partially-owned natural gas pipeline assets, and sees potential for 10% adjusted EBITDA compound annual growth rate through 2025. Kinetik (KNTK) has "continued growth potential, but be careful of dilution," The Value Portfolio writes in a bullish analysis posted recently on Seeking Alpha.

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'Pure-play Permian powerhouse' Kinetik Holdings started at Buy at Mizuho