By Peet Serfontein & Motheo Tlhagale
Kinder Morgan is one of North America's largest energy infrastructure companies. It operates an extensive network of ~79 000 miles of pipelines and 140 terminals, transporting and storing natural gas, crude oil, refined petroleum products, carbon dioxide, and other commodities. The company also owns significant natural gas storage capacity and renewable natural gas generation capacity. It holds a 37.5% stake in the Natural Gas Pipeline Company of America (NGPL).
Technically, the stock presents a compelling investment opportunity, supported by both technical momentum and AI-driven forecasts. Since mid-2023, the share price has shown a clear and sustained uptrend, creating a favourable backdrop for continued appreciation. Reinforcing this outlook, an AI model using a gradient boosting regressor, trained on historical prices and technical indicators, projects positive performance across one-month, three-month, six-month, and one-year horizons. The alignment between historical price strength and forward-looking projections supports a bullish bias.
Our bullish outlook is supported by current low volatility, which signals market stability and potential for upward momentum. Additionally, a recent quick rebound above its 200-day moving average highlights strong technical support and renewed investor confidence, reinforcing the case for continued price appreciation.
Fading downside momentum in the Moving Average Convergence Divergence (MACD) histogram and a stable on-balance volume (OBV) indicator trajectory both support a bullish outlook.
| Share Information | |
|---|---|
| Share Code | KMI |
| Industry | Energy |
| Market Capital (USD) | 59.42 billion |
| One Year Total Return | 29.54% |
| Return Year-to-Date | 0.74% |
| Current Price (USD) | 26.74 |
| 52 Week High (USD) | 31.48 |
| 52 Week Low (USD) | 20.56 |
| Financial Year End | December |
| The share price is flat year-to-date. With a beta of 0.67, we expect lower volatility compared to the market. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 1.15 | 1.27 | 1.34 | 1.45 |
| Growth (%) | 10.78 | 4.87 | 8.23 | |
| Dividend Per Share (USD) | 2.30 | 1.17 | 1.20 | 1.23 |
| Growth (%) | -49.06 | 2.22 | 2.59 | |
| Forward PE (times) | 20.99 | 20.01 | 18.49 | |
| Forward Dividend Yield (%) | 4.37 | 4.47 | 4.58 | |
| The group remains well positioned to deliver growth over the medium term. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | ADTN - Buy (Continue to hold) |
BMY - Buy (Continue to hold) |
SYK - Bu (Continue to hold) |
|---|---|---|---|
| Entry | 9.28 | 48.34 | 380.86 |
| Current Price | 9.39 | 47.41 | 389.94 |
| Movement | +1.2% | -1.9% | +2.4% |
| Comment | The price is holding around historically active ranges above the 200-day SMA. Upside momentum is supportive. Our stop loss is set at $8.50. | A Bollinger Bands buy signal has emerged, though the price remains below the 200-day SMA, framing this as a counter-trend setup. Upside momentum supports the $56.00 target, with our stop-loss set at $45.00. | The stock will trade ex-dividend on 30 September ($0.84 gross). Seasonal strength and price action above the 200-day SMA support the outlook. Our price target remains $428.00 target with a $374.00 trailing stop to manage risk. |
| Time to exit | 22 December 2025 | 12 November 2025 | 28 October 2025 |
| Share Name and Position | ADP - Buy (Continue to hold) |
MCD - Buy (Continue to hold) |
ETN - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 308.64 | 299.17 | 334.86 |
| Current Price | 299.77 | 315.76 | 343.75 |
| Movement | -2.9% | +5.5% | +2.7% |
| Comment | The stock will trade ex-dividend on 12 September ($1.54 gross). A rising wedge pattern is developing, though the price dipped below the 200-day SMA. Downside momentum is a concern. We maintain our $336.00 target with a $298.00 stop-loss. | The price in an inclining channel above the 200-day SMA remains constructive. Upside momentum supports maintaining the $331.00 target. Our trailing stop is set at $303.00 to safeguard gains. | A developing wave B (Elliott Wave theory) remains of interest, holding above the 200-day SMA. Downside momentum is a concern. Our $395.00 target is maintained, with a $320.00 trailing stop. |
| Time to exit | 30 September 2025 | 1 October 2025 | 28 April 2026 |
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