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Kinder Morgan (NYSE:KMI) lower Monday when Wolfe Research downgrade share to Ineffective from Peer Perform with an $18 price target, says the company provides good exposure to high-quality interstate gas pipelines but also to a mix of other lower-quality businesses such as bulk terminals related to the Jones Act and refined products in California, has requested a transition to electric vehicles.
Kinder Morgan has demonstrated strong discipline in capital allocation in recent years and has added assets that have surged at a good value, but Wolfe analyst Keith Stanley thinks the stock has “been ahead of the mainstream. it’s after a year-end run and can’t justify a valuation above $18/share using our parts aggregator framework with more limited growth potential.”
Kinder Morgan boasts a dividend yield of nearly 6% and has “many avenues to continue improving its shareholder rewards making it a valuable investment,” The Value Portfolio wrote in a note. New bullish trend analysis posted on Seeking Alpha.
