Barclays trims ONEOK price target to $88 following strong Q1 results
ONEOK reported a 12% rise in net income and upgraded 2026 earnings outlook, yet Barclays has lowered its share price target citing valuation adjustments.
Barclays has lowered its price target for ONEOK, Inc. (NYSE:OKE) to $88 from $90, while maintaining an Equal Weight rating on the shares. The adjustment was made on July 8, following the release of ONEOK’s fiscal first quarter 2026 financial results, which demonstrated robust operational growth across its core segments.
ONEOK reported net income of $776 million for the quarter, representing a 12% year-on-year increase. Diluted earnings per share came in at $1.23. The midstream energy company also saw its adjusted EBITDA rise by 13% to $2.0 billion, supported by a 15% increase in Natural Gas Liquids (NGL) raw feed throughput volumes and a 12% rise in refined products volumes shipped.
Operational metrics further highlighted the company’s performance, with the Natural Gas Liquids segment’s adjusted EBITDA growing by 11% and natural gas volumes processed increasing by 5%. ONEOK, which gathers, fractionates, processes, transports, stores, and markets natural gas, operates through three primary segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines.
In conjunction with the quarterly results, ONEOK raised its full-year 2026 guidance. The company now projects a net income midpoint of $3.5 billion, with diluted earnings per share expected to reach a midpoint of $5.53. Adjusted EBITDA for the full year is now forecast to hit a midpoint of $8.25 billion.
Despite the positive financial trajectory and upgraded guidance, Barclays adjusted its valuation outlook. The analyst firm’s decision to lower the price target suggests a reassessment of the stock’s current valuation relative to its peers, even as ONEOK continues to deliver strong cash flow generation and operational efficiency in the natural gas sector.
