UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on Kinder Morgan

In a report published Wednesday, J.P. Morgan & Co. reiterated its Overweight rating on Kinder Morgan

, and raised its price target from $39.00 to $41.00. J.P. Morgan noted, “KMI is a levered play on the distribution growth at KMP and EPB. Capitalizing on both MLPs' immense scale and asset diversity, KMI has delivered an impressive record of growth (KMI's cash flow increased from $153mm to $1,381mm between 2000 and 2011), a testament to Kinder Morgan's industry-leading management, in our view. Moreover, despite recent periods of extreme market instability, among other obstacles, Kinder Morgan has consistently met published growth targets. After acquiring El Paso, Kinder Morgan is now the third-largest domestic energy company, with a combined corporate family EV of ~$100bn. We believe that possessing this level of scale, diversification and leverage to the significant energy infrastructure build-out surrounding unconventional production makes KMI a core holding. Finally, we see the current ~4% yield as an attractive entry point given KMI's stable cash flow and visibility to attractive 13%+ dividend growth, especially for investors looking to avoid the complications of MLP ownership.” Kinder Morgan closed on Tuesday at $35.53.