DT Midstream upgraded to Buy from Neutral at Citi

Citi upgraded DT Midstream (DTM) to Buy from Neutral with a price target of $115, up from $90. The recently announced $1.2bB acquisition of three Federal Energy Regulatory Commission-regulated pipelines “distinguishes the company and starts DTM on a path to expanding its investor base,” the analyst tells investors in a research note. The firm says DT’s pipeline segment will grow to 70% of the overall business, a premium segment that’s contribution is now significantly higher than its natural gas peers. Additionally, the company is now over $10bB in market cap, which should attract attention from a wider investor base, including international investors, contends Citi.