Credit Suisse Maintains Outperform and $41.00 PT on Kinder Morgan Following Exceeding 2013 Budget

In a report published Thursday, Credit Suisse analyst John Edwards maintained Outperform and a $41.00 price target on Kinder Morgan Inc.

, following the company exceeding their 2013 budget by ~5 percent, despite 4Q miss. According to the report, the analyst's $41 target price is based on their three stage distribution discount model, utilizing stage one (Years one-five) growth of 9.4 percent, stage two (Years six-ten) growth of 7.0 percent and a 2.5 percent terminal growth rate discounted at a 9.0 percent cost of equity capital. “KMI reported 4Q cash available for dividends (CAD) of $0.46/share vs. CS estimate of $0.48 and consensus $0.44,” the report noted. “KMI also declared a dividend of $0.41/share that fell below our estimate and the Street by $0.01/share. The declared dividend was flat q/q while the annual 2013 dividend of $1.60 was up from the prior year by 14.3%. Despite the 4Q miss, full year CAD of $1.71 billion exceeded KMI's 2013 budget by ~5%, largely due to the acquisition of Copano in May.” KMI closed Wednesday at $35.49.