Key Stats for OKE Stock
- This-Week Performance: 7%
- 52-Week Range: $64 to $101
- Valuation Model Target Price: $107
- Implied Upside: 16.5%
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What Happened?
ONEOK is benefiting from a broader shift toward midstream energy stocks, as investors rotate into stable, cash flow-driven businesses tied to rising U.S. natural gas demand, particularly from LNG exports and increasing power consumption. The company’s integrated network across key basins has positioned it as a direct beneficiary of this trend.
ONEOK stock rose about 7% this week, finishing near $92 per share, as bullish options activity, an analyst upgrade, and improving visibility into future earnings helped reinforce confidence in the company’s growth outlook.
ONEOK operates pipelines and processing assets that move natural gas and natural gas liquids, allowing it to generate steady, fee-based revenue that is less sensitive to commodity price swings than producers.
This week, bullish sentiment strengthened after investors purchased 19,356 call options on ONEOK, a 174% increase over average daily volume, signaling increased upside expectations.
Jefferies also upgraded the stock to Buy from Hold and raised its price target to $98 from $85, implying about 11% upside from the stock’s last close, while noting potential upside from butane blending, location-based spreads, and longer-term growth from the Bakken region.
Across the Street, 12 of 22 analysts now rate the stock Buy or higher, while 10 maintain Hold ratings, with a median price target near $91.
The setup also stands out relative to peers such as Kinder Morgan and Williams Companies, which are more focused on long-haul pipeline transportation, while ONEOK has greater exposure to natural gas liquids and processing, allowing it to capture additional margin across the value chain.
Institutional activity remained mixed, with several firms increasing exposure while others trimmed positions, leaving overall ownership at about 69.13%, including California Public Employees’ Retirement System raising its stake to over 1.09 million shares and Avior Wealth Management increasing its position by 33%.
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Is OKE Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 0.4%
- Operating Margins: 19.6%
- Exit P/E Multiple: 14.5x
Revenue growth is expected to remain relatively flat over the next several years, reflecting the mature nature of ONEOK’s asset base and its shift toward stable, fee-based cash flows rather than volume-driven expansion.
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Profitability is supported by margin expansion as integration synergies from recent acquisitions improve operating efficiency and reduce costs across its midstream network.
This suggests future returns depend more on execution, cost discipline, and system optimization rather than top-line growth acceleration.
Based on these inputs, the model estimates a target price of $107, implying about 16.5% total upside over roughly 3 years, indicating the stock appears modestly undervalued at current prices.
Growth over the next 12 months is driven by higher volumes moving through newly acquired assets, continued demand from LNG exports and power generation, and the company’s ability to capture cost synergies that expand margins.
Integration execution remains critical as efficiencies flow through financial results.
Stable fee-based contracts continue to protect earnings even if commodity prices remain volatile.
Capital allocation, including dividends and disciplined reinvestment, supports steady total returns.
At current levels, ONEOK appears moderately undervalued, with performance driven primarily by execution and demand growth rather than rapid revenue expansion.
How Much Upside Does OKE Stock Have From Here?
Investors can estimate ONEOK potential share price, or what any stock could be worth, in under a minute using TIKR’s New Valuation Model tool.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
