Barclays Initiates Coverage on ONEOK (OKE) With Equal Weight Rating
Barclays launched coverage of ONEOK, Inc. with an Equal Weight rating and a $94.00 price target following the company's strong third-quarter financial results.
Barclays initiated coverage on shares of ONEOK, Inc. with an equal weight rating and a price target of $94.00. The objective set by the firm points to a potential upside of 9.36% from the previous close. According to MarketBeat data, ONEOK maintains an average rating of Moderate Buy, with one analyst rating the stock as a Strong Buy, nine assigning a Buy, and eleven issuing a Hold rating.
Analyst price targets have seen various updates across the industry. Scotiabank lifted its price target from $96.00 to $97.00 alongside a sector perform rating. Earlier, Wells Fargo & Company boosted its price objective from $98.00 to $106.00 with an overweight rating. Jefferies Financial Group assigned a $97.00 price target, and UBS Group set a $93.00 price objective. MarketBeat reported consensus price targets on the equity ranging between $98.70 and $99.55.
The analyst initiation follows strong third-quarter earnings reported on Tuesday, October 27th. The energy infrastructure company posted earnings of $2.13 per share, surpassing consensus expectations. MarketBeat reported an estimated EPS target of $1.50, beaten by $0.63, while Zacks recorded a consensus EPS estimate of $1.46. Quarterly revenue stood at $12.46 billion, beating estimates of $10.54 billion and Zacks expectations of $11.77 billion. The company had earned $1.49 per share on $8.63 billion in revenue during the same quarter of the previous year.
ONEOK recorded a net margin of 9.42% and a return on equity of 16.36% for the quarter. Looking ahead at the full fiscal year, analyst forecasts tracked by MarketBeat project 6.25 EPS, while other analysts predict 6.18 EPS, and Zacks consensus estimates anticipate $5.69 EPS on $43.84 billion in revenue.
Capital distributions also continued as ONEOK disclosed a quarterly dividend of $1.07 per share, payable on Monday, November 16th to stockholders of record on Monday, November 2nd. The payout equals an annualized dividend of $4.28 and represented a yield of 4.7% at the time of the announcement, supported by a dividend payout ratio of 66.46%.