Mizuho's New Price Target#
Mizuho has increased its price target for ONEOK Inc (NYSE:OKE) from $89.00 to $91.00, while keeping a Neutral rating on the stock. This new target indicates a modest potential increase from the current stock price of $87.50. According to data, the stock may be undervalued, with a Fair Value estimated at $94.18, suggesting it could be a good opportunity for investors.
Benefits from Commodity Prices#
The firm believes that ONEOK will benefit from rising commodity prices, particularly due to its operations in areas like the Bakken, which are sensitive to crude oil price changes. Mizuho is interested in management's insights regarding producer activity related to its Gathering and Processing (G&P) systems and the potential for increased volume in the latter half of 2026 and into 2027.
Stock Performance and Earnings Outlook#
Mizuho anticipates that the sentiment around ONEOK shares will remain volatile, closely following commodity price trends. The stock has seen a 31% return over the past six months and has a Price-to-Earnings (P/E) ratio of 16.15. The firm has updated its earnings estimates for 2026-2029 based on management's guidance, with FY26 estimates leaning towards the higher end of the range due to favorable market conditions.
Dividend Announcement and Board Changes#
Recently, ONEOK declared a quarterly dividend of $1.07 per share, consistent with the previous quarter, amounting to an annualized rate of $4.28 per share. This dividend will be payable on May 15, 2026, to shareholders recorded by May 4, 2026. Additionally, the company announced the upcoming retirement of two board members, Pattye L. Moore and Gerald B. Smith, at the end of their terms in May 2026, signaling notable changes within the company.