Morgan Stanley has upgraded two major natural gas pipeline stocks, citing recent share price weakness as an opportunity rather than a fundamental concern.
Analyst Robert Kad raised TC Energy (NYSE: TRP) and DT Midstream (NYSE: DTM) both to Overweight from Equal Weight on September 10, 2026.
The upgrades follow a notable pullback in natural gas pipeline stocks, which Morgan Stanley believes has created an attractive entry point for investors.
TC Energy (NYSE: TRP) received a price target of C$108 as part of the upgrade, signaling meaningful upside from where shares have been trading recently.
Morgan Stanley described the recent underperformance in the shares as “fundamentally unwarranted,” a pointed signal that the bank sees no structural issues driving the weakness.
DT Midstream (NYSE: DTM) was also lifted to Overweight, with analyst Robert Kad raising the price target to $170 from $165, reflecting continued confidence in the company’s earnings trajectory.
The back-to-back upgrades suggest Morgan Stanley views the broader pipeline sector selloff as a temporary dislocation rather than a sign of deteriorating industry fundamentals.
Natural gas pipeline stocks have faced pressure in recent months amid shifting sentiment around energy demand, regulatory uncertainty, and broader market volatility across the sector.
TC Energy operates one of North America’s largest natural gas pipeline networks, while DT Midstream focuses on gathering, processing, and transportation of natural gas across key U.S. producing regions.
Both companies have significant exposure to long-term contracted revenue streams, which analysts often point to as a stabilizing factor during periods of commodity price uncertainty.
Robert Kad’s call positions Morgan Stanley as a notable bull on midstream energy names at a time when some investors have grown cautious about the sector’s near-term outlook.
For income-focused investors, the upgrades from a major Wall Street firm could renew interest in pipeline stocks, which have historically offered competitive dividend yields alongside steady cash flow generation.
