Kinder Morgan Canada share aim cut as expansion hopes tumble post tube deal

Analysts during CIBC have cut their aim share cost for Kinder Morgan Canada Ltd. and contend a destiny is pale in a arise of a understanding to sell a biggest stream and enlargement item — a Trans Mountain tube complement — to a sovereign government.

They contend in a investigate news a association will be left cash-rich though prospect-poor after it concluded to sell a existent 300,000-barrel-per-day tube and a behind 590,000-bpd enlargement devise for $4.5 billion.

Kinder Morgan Canada batch fell again Wednesday, stability a post-deal trend that saw it tighten scarcely 3 per cent reduce during $16.10 on Tuesday. It dipped to $15.71 in Wednesday afternoon trade on a Toronto Stock Exchange.

CIBC slashed a 12-month cost aim to $17 from $22 since of a reduce expectations of destiny enlargement in income and dividends for Kinder Morgan shareholders.

It says a association has a good understanding of collateral available, given Ottawa’s money understanding and a devise of a 70 per cent owner, Houston-based Kinder Morgan, Inc., to spend some-more than $15 billion in altogether enlargement collateral over a subsequent 5 years.

But a note adds that it’s doubtful that an merger would concede it to equivalent a advantage from a $7.4-billion enlargement of a Trans Mountain pipeline.

Article source: http://www.cbc.ca/news/business/kinder-morgan-stock-price-target-1.4684085?cmp=rss