The underperformance of ONEOK has sent shockwaves through the market, but experts do not see this as a reason to initiate a downgrade. According to analysts at Wells Fargo, ONEOK's current issues are short-term in nature and do not impact the company's long-term growth trajectory.
While ONEOK has faced weather-related supply chain disruptions and a lower-than-expected 2023 growth forecast, analysts maintain a Market Perform rating. This is because the company's fundamental strength remains intact, making it a buying opportunity for investors.
This sentiment is shared by analysts at SunTrust Robinson Humphrey, who maintain a Buy rating for ONEOK. They say that the company's underperformance presents an opportunity for investors to buy into a fundamentally strong company.
Experts caution against making hasty conclusions based on short-term data, as ONEOK's peer group has also been affected by similar disruptions. As a result, analysts forecast a long-term growth trajectory for ONEOK, with Wells Fargo expecting the company to reach $6.50 per share by 2024, a 10% increase from current levels.