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Raymond James Upgrades Kinetik (KNTK) to Outperform, Sets $46 Target

Kinetik Holdings Inc. (NYSE:KNTK) is included among the 13 Best Dividend Stocks Paying Over 6%.

On January 5, Raymond James upgraded Kinetik Holdings Inc. (NYSE:KNTK) to Outperform from Market Perform and set a $46 price target. The call was part of a broader refresh of ratings across the midstream supplier group heading into 2026. Raymond James said midstream is entering 2026 with momentum, but after what it described as “constructive” share performance in 2025, expectations are now higher. In the firm’s view, “the real work now shifts to execution.” Investors are paying less attention to broad industry tailwinds and more to which companies can actually convert that backdrop into real, measurable cash flow.

Kinetik Holdings Inc. (NYSE:KNTK)’s earnings help explain the upgrade. In third-quarter earnings reported on November 5, the company posted total operating revenue of $463.9 million, up 17% from the same period last year. Product revenue also moved higher, rising to $357.6 million from $290.4 million in the prior-year quarter.

The quarter also included an important operational milestone. Kinetik said its Kings Landing project officially entered full commercial service, adding processing capacity in New Mexico. CEO Jamie Welch noted that Kings Landing has been consistently running above 100 million cubic feet per day, which lines up with the company’s internal expectations.

On the cash flow side, Kinetik appears to be in solid shape. The company reported distributable cash flow of $158 million for the quarter, along with free cash flow of $50.9 million. That cash generation supports the dividend, with the dividend coverage ratio coming in at 1.3x, giving the company some breathing room even if conditions soften.

Kinetik Holdings Inc. (NYSE:KNTK) is an American midstream energy company focused on the Permian Basin, with operations tied to gathering, processing, and related infrastructure supporting production growth in the region.

While we acknowledge the potential of KNTK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KNTK and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Dow Stocks to Buy in 2026 and 13 Best Consumer Staples Dividend Stocks to Invest In Now

Disclosure: None.

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