Kinder Morgan
Energy infrastructure company Kinder Morgan Inc. (NYSE: KMI) has added more than 10% to its share price over the past 12 months. Late last month, the company sold a 25.5% stake in its Elba Liquefaction business to an unnamed buyer for $565 million. Kinder Morgan plans to use the money to pay down short-term debt and make further acquisitions. Among the popular acquisition targets for energy firms are renewable natural gas (RNG) producers. Kinder Morgan acquired one in August for $135 million, and BP purchased a much larger one, Archaea, on Monday for $3.3 billion in cash.
Of 21 brokerages covering Kinder Morgan stock, 14 have Hold ratings and just five have Buy or Strong Buy ratings. At a share price of around $17.50, the upside potential based on a median price target of $20.00 is 14.3%. At the high price target of $25.00, the implied upside is 42.9%.
Consensus estimates call for third-quarter revenue of $4.56 billion, down 11.4% sequentially but up 19.4% year over year, and adjusted earnings per share (EPS) of $0.29, up 6.1% sequentially and by 31.8% year over year. For the full 2022 fiscal year, analysts forecast EPS of $1.17, down 11.3%, on sales of $18.33 billion, up 10.4%.
Kinder Morgan stock trades at about 14.9 times expected 2022 EPS, 14.6 times estimated 2023 earnings of $1.20 and 14.3 times estimated 2024 earnings of $1.22. The stock’s 52-week range is $15.01 to $20.20. Kinder Morgan pays an annual dividend of $1.11 (yield of 6.46%). Total shareholder return over the past 12 months was 0.8%.
Tesla
Shares of Tesla Inc. (NASDAQ: TSLA) reached an all-time high last November. Since then, the stock price has dropped by nearly 38%. Even so, the shares are up more than 1,150% over the past three years.
While revenue and profits are going to continue growing, Tesla is trailing far behind China’s BYD (Berkshire Hathaway owns 19% of BYD), which Tuesday morning reported net profit growth of up to 365% year over year to $820 million. BYD’s market cap is now greater than that of GM and Ford combined, but at around $100 billion it is less than a sixth of Tesla’s.
Sentiment toward Tesla remains mixed. Of 37 analysts covering the stock, 22 have a Buy or a Strong Buy rating and 11 more rate the shares at. At a share price of around $219.40, the implied upside based on a median price target of $316.33 is 44.2%. Based on a high price target of $530.00, the upside potential is about 142%.
Analysts expect Tesla to post third-quarter revenue of $21.96 billion, up nearly 30% sequentially and almost 60% higher year over year, and adjusted EPS of $1.01, up 33.6% sequentially and by 62.9% year over year. For the full 2022 fiscal year, current estimates call for EPS of $4.26, up nearly 89%, on sales of $84.64 billion, up 57.3%.
Tesla stock trades at about 51.5 times expected 2022 EPS, 37.5 times estimated 2023 earnings of $5.84 and 30.8 times estimated 2024 earnings of $7.12. The stock’s 52-week range (split-adjusted) is $204.16 to $414.50. Tesla does not pay a dividend. Total shareholder return over the past year is negative 21.9%.
Originally posted at 24/7 Wall St.
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