Kinder Morgan Inc (KMI)

[eFinanceMarkets]

Kinder Morgan offers plenty of risk but plenty of upside, analysts say

Kinder Morgan (NYSE:KMI) fell 2.8% in today's trade and has dropped 10.5% YTD, but Raymond James analyst Darren Horowitz maintains his Strong Buy rating on the shares while trimming his price target to $23 from $27.

Horowitz thinks KMI's efforts to improve its financial positioning should ultimately provide a better platform to enhance future shareholder value, as KMI continues to de-lever, tracking toward a sub-5x leverage ratio - a point near which KMI could return cash to shareholders via a substantial dividend and share growth.

Meanwhile, RBC analysts initiate coverage of Kinder Morgan Canada, which trades as KML on the Toronto exchange, with an Outperform rating, seeing significant upside opportunity for risk-tolerant, long-term oriented investors while acknowledging that the Trans Mountain is "anything but certain and the share price could be a bumpy ride given court cases and political battles."