TSX:KEY - Post Discussion
Post by
hawk35 on Apr 21, 2023 9:55am
Scotia Comments on KEY
Scotia Capital’s Robert Hope raised his Keyera target to $37 from $34 with a “sector outperform” recommendation.
“We reiterate our favourable view on Keyera as we believe the company is well positioned to generate above-average growth at what we view to be an attractive valuation,” said Mr. Hope. “The company is at an interesting point in its evolution, which we refer to as Keyera 2.0. With the large Key Access Pipeline System (KAPS) entering service soon, we see a step down in Keyera’s risk profile and a step up in cash flows, along with a move down in capital expenditures. We believe this presents an opportunity for increased shareholder returns through dividend increases and buybacks, all the while further strengthening the balance sheet. These are themes that we expect will be well-received by the market. We also introduce our 2025 estimates and roll forward our valuation to 2025, which increases our target.”
Be the first to comment on this post