Market Overview

UPDATE: Jefferies Initiates Coverage on Kinder Morgan Energy Partners LP on Strong US Footprint

Related KMP
Markets Sell-Off After Malaysian Airline Crash In Ukraine
Market Wrap For June 20: Yet Again, Dow And S&P 500 Indices Hit New Highs

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.

Posted-In: Christopher Sighinolfi JefferiesAnalyst Color Initiation Analyst Ratings

 

Most Popular

Related Articles (KMP)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters