Keyera Kept at Neutral by Credit Suisse 11:27 AM EDT, 10/08/2021 (MT Newswires) -- Credit Suisse on Friday reiterated its neutral rating on the shares of Keyera (KEY.TO) with a C$36.00 target price as it expects the Western Canadian petroleum processing and infrastructure company to report third-quarter results well under consensus estimates.
"Keyera (KEY) is scheduled to report Q3 2021 results on November 3rd and we forecast EBITDA of C$221m versus a consensus of C$248m and at the bottom of the C$221m-C$260m range," the investment bank noted. "Headed into the Q3 results season, we revisited a number of factors related to KEY and parts of Western Canada's energy ecosystem that underpin a series of "transition timing" issues. Very simply, commodity prices (across the hydrocarbon spectrum) are generally positive, egress issues are lessening (now or into the near-future) and volumes are slightly lifting. There is a "good news/bad news" situation arising from this environment with basin sentiment and reality being positive for prospective volumes, but a few spread based businesses can face margin compression given rates of change in some feedstock costs. With this context, our KEY estimates generally biased downwards for H2 2021 by ~C$50m on EBITDA (from ~C$972.9m to C$924.5m). Given the long-cycle nature of our coverage universe, we do not place undue emphasis on short-term quarterly results