Credit Suisse Sees Good Dividend Growth Potential for Kinder Morgan Inc

In a report published Thursday, Credit Suisse analyst John Edwards reiterated an Outperform rating and $49.00 price target on Kinder Morgan (NYSE: KMI).

In the report, Credit Suisse noted, “We are maintaining our TP of $49, based on a three-stage dividend discount model with growth rates of 11.6% in the first five years, 8.2% in the second five years and a 2.25% terminal value which we use in the name of conservatism, all discounted at 9%. Our $49 TP implies a ~4.4% yield based on forecasted annual dividend of $2.14/unit, 12 months out. Our target yield suggests an over ~30% total return outlook, in excess of the median total return outlook of our coverage group, keeping us at Outperform.”

Kinder Morgan closed on Wednesday at $38.26.