Kinder Morgan Has Fallen Enough To Go On Goldman’s Conviction Buy List (KMI)

I was going to do a one-year-anniversary-of-the-roll-up post last week as the stock was hitting a 52-week low of $31.09 but got distracted by something shiny and by the time I got back to KMI, it didn't seem worth the effort.

$34.05 up 91 cents.
From Barron's:

Kinder Morgan Makes Goldman’s Elite Conviction Buy List

Goldman Sachs has recommended investors buy Kinder Morgan (KMI) for a while. Now it has added the pipeline giant to its Conviction Buy List. That means analysts really like it quite a bit at current price levels.

With a price target of $48, Goldman sees potential for 50% upside from Thursday’s $33 price. Friday at 10:15 a.m. ET, KMI was already at $34.16, a 3% gain from the prior close.
Here’s lead analyst Ted Durbin‘s rationale:

In an uncertain macro, commodity price and volume environment, we see KMI as a safe haven due to its diverse portfolio of assets with a high percentage of fee-based, take-or-pay contracts. We think KMI has good line of sight to achieve its targeted 10% annual dividend growth rate through 2020, driven by its $22bn organic project backlog focused on highly contracted infrastructure. We see upside from M&A, and believe KMI trades at too wide a discount relative to history and its peers....

...MORE

The 6% yield tells you this issue is not risk-free but paying the divi makes shorting Kinder Morgan painful, to the tune of 1/2% per month.
KMI is trading below the price at the time the roll-up was announced, see Aug. 2014 gap up, but hey, it did create a taxable event for the limited partners!

FinViz

Previously:
Kinder Morgan Shares Have Lost The Equivalent Of A Year's Worth Of Dividends This Week (KMI)

There's Hatin' On Kinder Morgan and Then There's Calling For An Additional 24% Drop From Here (KMI)

Update On the Kinder Morgan Short (KMI)

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