Despite DT Midstream’s recent quarterly results falling short of market expectations, analysts at Wells Fargo remain confident in the company’s outlook. The bank’s research team views the stable demand for natural gas infrastructure as a catalyst for a substantial re-rating of the stock.
Revised Price Target Signals Strong Confidence
On March 13, Wells Fargo increased its price target for the energy infrastructure specialist from $150 to $165 per share, reaffirming its “Overweight” rating. Based on Friday’s closing price of $136.33, this new target implies a potential upside of approximately 21 percent. This stance places the bank at the more bullish end of the analyst spectrum, contrasting with the average consensus target of $141, which reflects a more cautious market view.
This optimism persists even though DT Midstream’s fourth-quarter 2025 earnings per share of $1.08 missed the expected $1.11, with revenue also coming in slightly below forecasts. Wells Fargo interprets this performance as part of a broader sector trend, noting it simultaneously raised forecasts for other industry leaders like Kinder Morgan and Energy Transfer.
Should investors sell immediately? Or is it worth buying DT Midstream?
Strategic Positioning in Natural Gas
The market continues to value the company’s strategic focus on pipeline networks and storage capacity within the natural gas segment. Although the stock experienced a decline of nearly 4 percent last week, it has posted a gain of over 12 percent since the start of the year. A price-to-earnings (P/E) ratio of nearly 32 underscores the confidence in the long-term importance of this infrastructure.
Investors are now closely monitoring how management will navigate capital expenditures and dividend distributions in the current half-year. The company’s operational performance through mid-2026 will be crucial in determining whether it can justify Wells Fargo’s ambitious valuation and close the gap between its current price and the bank’s target.
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