UBS Maintains a 'Neutral' on Kayne Anderson Energy Development Company (KED); MLP Outlook Remains Positive, But Few Issues Linger

August 28, 2012 10:07 AM EDT Send to a Friend
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Price: $34.86 +0.81%

Rating Summary:
    2 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 9 | New: 24
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UBS maintains a 'Neutral' on Kayne Anderson Energy Development Company (NYSE: KED) price target of $24.00 (from $21.00).

Analyst, Ronald J. Barone, said, "We expect KED's NAV to rise when reported at the end of F3Q '12, given the rise in MLP unit valuations over the last few months. The Alerian MLP Index (AMZ) and KED are up 7.2% and 5.3%, respectively, since May 31st."

"With respect to natural gas prices, we are encouraged by the decline in the natural gas rig count and, while we anticipate some seasonal softness in wellhead prices over the next few months, we believe prices a year from now will be well above current levels. Moreover, we believe natural gas liquids (NGLs) prices bottomed out in June and that moderate increases are likely for the balance of this year."

FY12 EPS estimate raised from $1.30 to $1.96 and FY13 from $1.33 to $2.19.

For an analyst ratings summary and ratings history on Kayne Anderson Energy Development Company click here. For more ratings news on Kayne Anderson Energy Development Company click here.

Shares of Kayne Anderson Energy Development Company closed at $25.10 yesterday.




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