Kinder Morgan (KMI 0.27%) has performed relatively well during the bear market. Shares of the energy infrastructure giant have risen about 11% since the stock market peaked early last year. That has significantly outperformed the broader market. The S&P 500 is down 15% during that timeframe. Add in the company's more than 6%-yielding dividend, and its total return was an even more impressive 19%.

Several Wall Street analysts see even more upside for the stock. Here's what's fueling that view.

A major growth headwind is finally fading

Bernstein analyst Jean Ann Salisbury recently upgraded Kinder Morgan's shares from market perform to outperform. The analyst also raised their price target on the stock from $19 to $22. That implies nearly 25% upside from the recent price of around $17.50 a share. 

The Bernstein analyst noted that, in recent years, the bear case for Kinder Morgan had been the roll-off of existing pipeline contracts. Because of a more challenging market environment, lower renewal rates were slicing about $250 million off its EBITDA each year. Therefore, despite spending $12.2 billion on expansion projects over the past several years, EBITDA has barely budged.

However, the company's rollover issues seem to be nearing an end or at least slowing. Salisbury believes it will enable Kinder Morgan to grow EBITDA in the medium term as new expansion projects come online. That's driving the analyst's view that shares have more upside ahead. 

The fundamentals have improved

Scotiabank analyst Tristan Richardson also has a positive view of Kinder Morgan. The analyst recently initiated coverage on the stock with a sector perform rating and a $20 price target, implying about 14% upside. 

The analyst pointed out that there should be "a much more stable landscape" in the midstream sector than we've seen over the past five years. That means Richardson sees the opportunity for the group to outperform the market. 

Meanwhile, Citi analyst Spiro Dounis initiated coverage on Kinder Morgan a few months ago with a neutral rating and $19 price target (suggesting 9% upside). The analyst noted that Kinder Morgan was one of several midstream stocks offering a "compelling combination of growth and yield." The analyst pointed out that with leverage and capital spending down sharply, the sector might be in its best position ever to handle an economic downturn. 

The sentiment shifter

Russia's invasion of Ukraine is a significant factor driving the overall improvement in midstream market conditions. It caused "heightened concerns about energy security," stated Kinder Morgan CEO Steve Kean in the company's fourth-quarter earnings press release, casting "a spotlight on the U.S. liquefied natural gas (LNG) export sector." Kean noted: 

Our own and independent analysts project that demand from LNG facilities is expected to double in the coming years, and we are moving forward with projects to provide additional transport capacity for that growing market. With a large portion of our existing network in Texas and Louisiana -- where nearly all of that LNG demand growth is expected to occur -- we expect to largely serve that growth with highly capital-efficient expansions on our existing network.

In addition to that international demand driver, domestic natural gas customers need more flexibility because of "extreme weather events and as intermittent renewable energy resources continue to expand their share in the power sector." Kinder Morgan should benefit because it has an industry-leading natural gas storage business complementing its extensive interconnected gas pipeline network.

Meanwhile, the company continues to invest in building the infrastructure to support other low-carbon fuels, including renewable natural gas, renewable diesel, sustainable aviation fuel, and carbon capture and sequestration. These factors led Kean to conclude: "KMI's future is bright. The assets we operate and the services we provide will be needed for a long time to come."

The weight is lifting

Kinder Morgan has struggled to grow in recent years because contract expirations (and other headwinds) offset the incremental earnings from expansion projects. However, that headwind is fading because of a shift in sentiment. Meanwhile, the company has several demand catalysts to drive growth in the coming years. That's leading several analysts to see a lot more upside ahead for the high-yielding energy infrastructure stock.