DTM - DT Midstream Is Worth Holding But Its Time To Consider Recycling Profits
2024-06-23 09:27:14 ET
Summary
- DTM stock has risen over 25% since February, but now may be a good time to trim profits and consider alternative investments.
- Kinetik Holdings and EnLink Midstream are proposed as potential alternatives to outperform DTM in terms of total returns.
- Despite modest Q1 results, DTM remains on track to achieve its 2024 EBITDA projections, with three growth projects recently placed into service.
- I believe DTM is approaching a near-term upper limit in share price.
Thesis
I last covered DT Midstream ( DTM ) in February, touting its growth potential coincident with rising natural gas demand from LNG exports. Since that time, the stock has risen over 25%. In my first coverage of the stock, I felt that DTM was expensive compared to other midstream companies but that the growth potential was worth the price tag....
DT Midstream Is Worth Holding, But Its Time To Consider Recycling Profits