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UBS Maintains a 'Neutral' on Kayne Anderson Energy Development (KED); 2Q11 Brings Positive Surprises

July 21, 2011 12:35 PM EDT
KED Hot Sheet
Rating Summary:
    1 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Kayne Anderson Energy Development Company (NYSE: KED) price target of $21.00 from $19.

UBS analyst says, "F2Q11 results from operations drove a $0.97/share increase in NAV (to $22.85 from $21.88); KED achieved a total return of 5% (as measured by the change in adjusted NAV) versus -3% for the AMZX and 1% for the S&P 500. Paying down debt allowed Direct Fuels to resume cash distributions and contributed to a 30% valuation increase to $13/unit from $10/unit. Now expecting a full recovery on the first lien debt, mgmt increased ProPetro’s valuation by $10mm...Factoring in final adjustments for the IRP sale and stronger than expected guidance, we are raising our 2011/12 EPS estimates to $1.60/$1.32 from $0.80/$0.97 and our 12-month price target, which is based on a forward ~0.9x book multiple (inline with KED’s historical average)."

For more ratings news on Kayne Anderson Energy Development Company click here and for the rating history of Kayne Anderson Energy Development Company click here.

Shares of Kayne Anderson Energy Development Company closed at $20.67 yesterday, with a 52 week range of $13.80-$21.42.


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