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Kayne Anderson Energy Development (NYSE:KED) was upgraded by equities research analysts at Stifel Nicolaus from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday, reports. The firm currently has a $37.00 target price on the stock. Stifel Nicolaus’ price objective points to a potential upside of 14.30% from the stock’s previous close.

The analysts wrote, “In mid-June KED was trading at $35.21 and approximately a 2.1% premium to its preliminary NAV of $34.49. Since then the fund price has declined approximately 8.1% to $32.37 while its Adjusted NAV has increased 6.8% to $36.85. As a result the fund is trading at 12.2% discount to its Adjusted NAV and offering investors an attractive yield of 6.4%. “Accordingly we are raising our rating to Buy and establishing a conservative target price of $37.00 which offers investors a total return potential of approximately 20.7% comprised of 14.3% price appreciation and a current yield of 6.4%. Our target price is approximately 1.0x its NAV. We continue to believe that investors can be well served by funds which offer diversified portfolios and professional management. In addition, professional investors may have investment opportunities that individual investors may not be able to participate in. We also note that KED is suitable for IRAs, foundations, and tax exempt accounts as KED does not generate unrelated business taxable income (UBTI).”

Shares of Kayne Anderson Energy Development (NYSE:KED) opened at 32.37 on Wednesday. Kayne Anderson Energy Development has a 52 week low of $24.65 and a 52 week high of $35.72. The stock has a 50-day moving average of $33.98 and a 200-day moving average of $31.37.

The company also recently announced a quarterly dividend, which is scheduled for Friday, July 18th. Shareholders of record on Friday, July 11th will be paid a dividend of $0.515 per share. This represents a $2.06 annualized dividend and a dividend yield of 6.36%. The ex-dividend date is Wednesday, July 9th. This is a positive change from Kayne Anderson Energy Development’s previous quarterly dividend of $0.51.

Kayne Anderson Energy Development Company is a non-diversified, closed-end management investment company.

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