UPDATE: Jefferies Initiates Coverage on Kinder Morgan Energy Partners LP on Strong US Footprint
In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on Kinder Morgan Energy Partners LP (NYSE: KMP) with a Hold rating and $88.00 price target.
In the report, Jefferies noted, “KMP boasts one the broadest midstream and downstream footprints in the US providing non-discretionary services throughout various facets of the natgas value chain. Its GP Parent, KMI, owns 9% of BV equity but is entitled to ~47% of KMP's total distribution payout, thus forcing KMP to employ the highest cost of equity in the group. We remain cautious on KMP as we forecast a ~1.00x coverage and ~4% distribution CAGR through '17. We're initiating with a Hold.”
Kinder Morgan Energy Partners LP closed on Tuesday at $81.51.
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