Credit Suisse Downgrades Kinder Morgan (KMI) to Neutral
Credit Suisse downgraded Kinder Morgan (NYSE: KMI) from Outperform to Neutral with a price target of $39.00.
Analyst J. Edwards commented, " The commodity price fall and the rise in the cost of capital prompted management to back off from 10% dividend growth CAGR through 2020 starting with a cut next year to the 6-10% range. While 10% LT is possible, the $2B+ of excess contemplated with Project Fusion is mostly gone. In response, we are cutting our growth assumption to 2020 by ~310bp/year to 6.9% and cutting our TP to $39 and our rating to Neutral. We don't think investors should be too surprised by the reduction."
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Shares of Kinder Morgan closed at $31.42 yesterday.