UPDATE: Stifel Nicolaus Upgrades Kayne Anderson Energy on Unique Opportunity

In a report published Thursday, Stifel analyst Selman Akyol upgraded the rating on Kayne Anderson Energy Development Company (NYSE: KED) from Hold to Buy, and named a $29.00 price target.

In the report, Stifel noted, “We are raising our rating to Buy from Hold as we believe KED offers investors an opportunity to purchase a well managed closed end fund trading at a 13% discount to our estimated NAV while providing an attractive yield of 7.0%. We are establishing a target price of $29 which is slight premium to our estimated NAV of $28.18. Price appreciation plus yield offer investors a total return potential of 23%. We are adding KED to the Select List. While KED has historically had an emphasis on private MLP's, it has converted some of those holdings to public companies. In particular we would note its most recent conversion to a public company, its Direct Fuels holdings, are now part of Emerge Energy Services LP (EMES, Buy) which came public in May at $17 and now trades at $29. We estimate it comprises approximately 7.5% of the fund.”

Kayne Anderson Energy Development Company closed on Wednesday at $24.96.