UPDATE: Stifel Downgrades Kinder Morgan (KMI) to Hold
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(Updated - October 4, 2016 9:25 AM EDT)
Stifel downgraded Kinder Morgan (NYSE: KMI) from Buy to Hold with a price target of $24 (unchanged). Analyst Selman Akyol tied the downgrade in part to valuation following strong performance since early 2016.
Akyol explained, "At this time, we are downgrading shares of KMI to Hold based on current valuation and Kinder’s strong performance since early 2016. In addition, we are publishing our revised model with updated data from Kinder’s 10-Q. Our 2016 and 2017 EBITDA estimates were largely maintained from our prior model. As a reminder, we expect EBITDA growth of less than 2% in 2017 which is impacted by the sale of 50% of the Southern Natural Gas system’s that we expect to close in 4Q16. During 2016, management has announced a few strategic transactions to improve the company’s balance sheet and accelerate capital returning to shareholders. While Kinder Morgan’s natural gas dominated asset base and improving balance sheet remain attractive, we believe the current valuation largely reflects the positive attributes of the KMI story. As a result, we are downgrading shares of KMI to Hold."
Shares of Kinder Morgan closed at $23.01 yesterday.
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