BofA Securities Recommends ‘Buy’ for Oneok Stock

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BofA Securities recently released a Buy recommendation for Oneok ($NYSE:OKE) Inc., a leader in the midstream energy space. Operating as a diversified energy firm, Oneok Inc. provides natural gas, natural gas liquids, and crude oil gathering, processing, storage, and transportation services to customers in the United States. The company has assets spread across the United States, with its main operations located in Oklahoma, Texas, Arkansas, Kansas, Montana, and Wyoming. BofA Securities’ Buy recommendation for Oneok Inc.’s stock indicates that the company is likely to generate strong returns for investors over time. The Knox Daily has reported that the analysts at BofA Securities are confident that the company’s efficient operations and diverse portfolio of businesses will help it to deliver long-term profitability and growth.

Additionally, the report notes that Oneok Inc. is highly liquid and has a good balance sheet which provides it with the flexibility to pursue new growth opportunities in the future. Considering these factors, investors may want to consider investing in Oneok Inc. as it appears to be a strong investment opportunity with potential for significant returns in the future.

Market Price

On Wednesday, BofA Securities issued a ‘Buy’ recommendation for ONEOK Inc. stock. The stock opened at $66.0 and closed at $67.3, up by 1.9% from the prior closing price of 66.1. This marks a strong start for the company for the week, with investors showing confidence in the stock.

BofA Securities’ positive outlook for the stock is an encouraging sign of the company’s potential future growth. With strong fundamentals and a positive outlook from BofA Securities, ONEOK Inc. is on a path to success. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Oneok. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Oneok. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Oneok. More…

Key Ratios Snapshot

Some of the financial key ratios for Oneok are shown below. More…

Analysis

GoodWhale recently performed an analysis of ONEOK‘s wellbeing. According to Star Chart, ONEOK’s score of 6/10 in terms of cashflows and debt indicates that the company has an intermediate health rating and should be able to safely ride out most difficult market conditions without the risk of bankruptcy. ONEOK is strong in asset, dividend, and growth, and medium in profitability. We have classified ONEOK as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Considering ONEOK’s solid performance, we believe that investors interested in long-term growth may be particularly interested in this type of company. Those who are looking for a reliable and consistent cash flow may also be attracted to this kind of company, as dividends tend to be among the most stable forms of income. Moreover, those who prioritize safety in their investments may find that ONEOK’s strong financials provide assurance in this regard. More…

Peers

ONEOK Inc is a company that operates in the energy sector. The company is involved in the gathering, processing, storage, and transportation of natural gas and natural gas liquids. The company has operations in the United States, Canada, and Mexico. The company’s competitors include Kinder Morgan Inc, Energy Transfer LP, Enterprise Products Partners LP.

– Kinder Morgan Inc ($NYSE:KMI)

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. It owns or operates an extensive network of pipelines and terminals that transport petroleum products, natural gas, and other products. The company also owns and operates a fleet of liquefied natural gas (LNG) carriers. Kinder Morgan has a market capitalization of $40.72 billion as of 2022 and a return on equity of 7.82%. The company is headquartered in Houston, Texas.

– Energy Transfer LP ($NYSE:ET)

Energy Transfer LP is a publicly traded partnerships that owns and operates energy infrastructure assets in the United States. The company’s assets include natural gas pipelines, natural gas gathering and processing facilities, and crude oil pipelines. Energy Transfer LP is headquartered in Dallas, Texas.

– Enterprise Products Partners LP ($NYSE:EPD)

Enterprise Products Partners LP is a publicly traded partnership that owns and operates a diversified portfolio of energy assets. The company has a market cap of 54.94B and a ROE of 15.44%. The company’s operations are focused on natural gas, crude oil, and NGL (natural gas liquids) transportation, storage, and processing. The company also owns and operates a network of natural gas pipelines and gathering systems, as well as crude oil and NGL terminals and storage facilities.

Summary

Investment analysts at Bank of America Securities recently issued a “buy” recommendation for ONEOK, Inc. (OKE), citing the company’s stock as undervalued and a strong buy opportunity. The energy infrastructure provider has demonstrated a consistent track record of growing its profits and dividends over the years, which makes them attractive to investors. Furthermore, they have low debt levels and ample liquidity to fund expansions through acquisitions. They also have strong operating leverage and healthy cash flow, which should support future dividend growth.

In addition to this, their business model is well positioned to benefit from the continued growth of the US energy market. With these factors in mind, analysts believe that ONEOK is an attractive investment for investors looking to capitalize on its long-term potential.