And Two More Citi’s Spiro Dounis raised his Keyera Corp. target to $40 from $37 with a “buy” rating, while Stifel’s Cole Pereira moved his target to $40 from $39 with a “buy” rating. The average is $37.57.
“Marketing continues to outperform run rate expectations and would be a record if not for maintenance,” Mr. Dounis said. “We now estimate an improved 10-per-cent average FCF yield through ‘28 vs. 9 per cent prior. Excess cash flows help fund several identified potential expansion projects beyond ‘24 along with basin growth opportunities. While no projects were sanctioned yet, mgmt appears confident KAPS Zone 4, Frac de-bottleneck, and Frac 3 expansion projects will all move forward. Reinvesting in the business remains the preferred use of excess cash flow; however, mgmt also emphasized buybacks remain an option for cash flow if projects don’t emerge.”