Analyst Reaction - Positive Following its Investor Day event, CIBC’s Robert Catellier bumped his Keyera Corp. (
) target to $36, above the $34.69 average, from $35 with an “outperformer” rating. Others making changes include: National Bank’s Patrick Kenny to $37 from $36 with an “outperform” rating, TD Securities’ Linda Ezergailis to $37 from $36 with a “buy” rating and RBC’s Robert Kwan to $35 from $34 with an “outperform” rating.
“Keyera did a good job detailing what investors can expect when it comes to capital allocation and, specifically, the reiteration of its commitments to maintain leverage in the 2.5-3.0 times net debt/EBITDA range as well as its aim to fund growth without accessing external equity,” said Mr. Kwan. “Although investors may continue to take a somewhat cautious approach to the construction of the KAPS project given the current inflationary environment, we believe investors comfortable with the project will look to the stock as an attractive way to play upside from potential growth in Western Canada Sedimentary Basin volumes in the coming years.”