- Kinder Morgan (KMI +1.3%) adds to recent gains as two firms issue upgrades following earnings last week that convinced investors the company is likely to raise its dividend by 2018.
- Raymond James upgrades shares to Strong Buy from Outperform with a $27 price target, raised from $23, with analyst Darren Horowitz forecasting a 130% dividend hike to $1.15/share, which would bring KMI’s yield, using the current stock price, to 5.3% from 2.34%.
- Horowitz says KMI’s leverage profile continues to improve, placing it on a path to achieve a sub-5x leverage ratio by Q1 2018, when he expects KMI to begin returning cash to shareholders via substantial dividend growth.
- Also, BMO Capital raises its rating on KMI to Outperform from Market Perform with a $26 price target, lifted from $20, reflecting the firm's belief that KMI's proposed Trans Mountain oil pipeline expansion will be approved.