Kinder Morgan Energy Partners LP Upgraded by Bank of America to Buy (KMP)
Kinder Morgan Energy Partners LP (NYSE: KMP) was upgraded by Bank of America from a “neutral” rating to a “buy” rating in a research note issued on Tuesday, ARN reports. The firm currently has a $89.00 target price on the stock, down from their previous target price of $91.00. Bank of America’s target price would indicate a potential upside of 10.35% from the company’s current price.
The analysts wrote, “We upgrade KMP to Buy (from Neutral) as we believe the recent pullback in its unit price is overdone. Approximately 35% of KMP’s long-term debt is largely swapped to floating rates (~$6.2bn as of 31 March 2013) and potentially negatively exposed to rising interest rates. We believe the fear of tighter monetary policy has been a significant driver of KMP’s underperformance since May (KMP units declined 8.8% since 30 April 2013 versus 4.5% for the AMZ). That said, mgmt projected a 100 basis point increase in average interest rates would increase 2013 interest expense by only $57mn (~1% of our 2013 adjusted EBITDA forecast of $4,942mn).”
KMP has been the subject of a number of other recent research reports. Analysts at Barclays Capital initiated coverage on shares of Kinder Morgan Energy Partners LP in a research note to investors on Thursday, June 6th. They set an “overweight” rating on the stock. Separately, analysts at Raymond James raised their price target on shares of Kinder Morgan Energy Partners LP from $40.00 to $42.00 in a research note to investors on Tuesday, May 14th. They now have an “outperform” rating on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Kinder Morgan Energy Partners LP in a research note to investors on Monday, April 29th. They now have a $94.00 price target on the stock.
Five analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Kinder Morgan Energy Partners LP presently has an average rating of “Buy” and a consensus target price of $87.38.
Kinder Morgan Energy Partners LP (NYSE: KMP) opened at 80.65 on Tuesday. Kinder Morgan Energy Partners LP has a 1-year low of $74.76 and a 1-year high of $92.99. The stock’s 50-day moving average is currently $85.52. The company has a market cap of $30.715 billion and a price-to-earnings ratio of 72.53.
Kinder Morgan Energy Partners LP (NYSE: KMP) last announced its earnings results on Wednesday, April 17th. The company reported $0.97 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.65 by $0.32. The company had revenue of $2.66 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same quarter last year, the company posted $0.61 earnings per share. Kinder Morgan Energy Partners LP’s revenue was up 44.0% compared to the same quarter last year. Analysts expect that Kinder Morgan Energy Partners LP will post $2.64 EPS for the current fiscal year.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a pipeline transportation and energy storage company in North America.
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