UPDATE: KeyBanc Initiates CorEnergy Infrastructure Trust at Hold on Valuation
KeyBanc initiated CorEnergy Infrastructure Trust (NYSE: CORR) with a Hold rating.
KeyBanc commented, "CORR provides a way to gain exposure to the energy market without the volatility associated with commodity prices as the Company will have contractual rent obligations on mission critical energy infrastructure. … Being one of the pioneering energy infrastructure REITs (upon conversion), CORR will need to prove the viability of the external growth strategy. … While the premium 7.2% dividend yield appears attractive (vs. an average 3.3% dividend yield for the REIT sector), we believe the stock looks fairly valued at an 8.6% discount to our NAV estimate. We view the discount as warranted, though we could become more constructive if the Company were to address: the limited dry powder and the external management structure."
CorEnergy Infrastructure Trust closed at $6.92 on Monday.
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