Zacks Investment Research Upgrades ONEOK (OKE) to “Buy”

ONEOK (NYSE:OKE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage currently has a $77.00 price objective on the utilities provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 11.06% from the company’s current price.

According to Zacks, “In a year's time, shares of ONEOK have outperformed the rally of its industry. Company’s existing infrastructure in the STACK and SCOOP areas, and the Williston and Permian basins are likely to boost the production. ONEOK has widespread pipelines and storage facilities in some prolific oil and gas regions of the United States. 2018 guidance of the company points out the expected gain of the company from its well-placed assets in regions having high drilling activities. The increase in fee-based earnings, acquisition of ONEOK Partners, capital-growth projects and increasing drilling activities from the producers will further boost the performance of the company. However, ONEOK is subject to strict regulations and intense competition in midstream energy services. Rising interest rates is a concern and could impact profitability of the company.”

OKE has been the subject of several other research reports. Deutsche Bank started coverage on shares of ONEOK in a research note on Thursday, April 19th. They issued a “hold” rating and a $62.00 price objective for the company. BMO Capital Markets set a $68.00 price objective on shares of ONEOK and gave the company a “buy” rating in a research note on Thursday, March 8th. Barclays raised their price objective on shares of ONEOK from $66.00 to $72.00 and gave the company a “buy” rating in a research note on Tuesday, June 12th. Jefferies Financial Group upgraded shares of ONEOK from a “hold” rating to a “buy” rating in a research note on Tuesday, March 20th. Finally, ValuEngine upgraded shares of ONEOK from a “hold” rating to a “buy” rating in a research note on Thursday, May 3rd. Nine research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $62.71.

NYSE OKE opened at $69.33 on Tuesday. The company has a quick ratio of 0.49, a current ratio of 0.63 and a debt-to-equity ratio of 1.03. ONEOK has a one year low of $49.65 and a one year high of $70.99. The company has a market capitalization of $28.34 billion, a PE ratio of 39.39, a price-to-earnings-growth ratio of 2.76 and a beta of 1.23.

ONEOK (NYSE:OKE) last posted its quarterly earnings data on Tuesday, May 1st. The utilities provider reported $0.64 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.61 by $0.03. ONEOK had a net margin of 4.51% and a return on equity of 11.95%. The business had revenue of $3.10 billion during the quarter, compared to analyst estimates of $3.49 billion. During the same quarter last year, the firm posted $0.41 earnings per share. equities research analysts anticipate that ONEOK will post 2.63 earnings per share for the current year.

Institutional investors have recently modified their holdings of the stock. Hartree Partners LP purchased a new position in ONEOK in the fourth quarter worth approximately $962,000. Raymond James & Associates raised its holdings in ONEOK by 6.8% during the fourth quarter. Raymond James & Associates now owns 326,997 shares of the utilities provider’s stock worth $17,478,000 after purchasing an additional 20,679 shares in the last quarter. Amundi Pioneer Asset Management Inc. acquired a new stake in ONEOK during the fourth quarter worth approximately $10,394,000. Wealthsource Partners LLC acquired a new stake in ONEOK during the fourth quarter worth approximately $203,000. Finally, OLD Mutual Customised Solutions Proprietary Ltd. raised its holdings in ONEOK by 48.4% during the fourth quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 22,700 shares of the utilities provider’s stock worth $1,213,000 after purchasing an additional 7,400 shares in the last quarter. Institutional investors own 73.74% of the company’s stock.

About ONEOK

ONEOK, Inc, through its general partner interests in ONEOK Partners, L.P., engages in the gathering, processing, storage, and transportation of natural gas in the United States. The company operates through Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments.

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