Zacks Investment Research downgraded shares of Kinder Morgan Inc. (KMI) from NEUTRAL to UNDERPERFORM on November 06, 2014, with a target price of $35.00.
We are downgrading our recommendation to Underperform from Neutral on Kinder Morgan Inc, following its lower-than-expected third quarter results. The company's focus on natural gas has raised concern amid a sluggish natural gas price environment. We also remain bearish considering the risks that include a decrease in crude oil production and pricing at the CO2 segment, a decline in refined products or natural gas demand, and rising costs associated with organic growth projects. Also in the near-term performance would be affected by dropdown of interest in Ruby Pipeline, Gulf LNG and in Young Gas Storage. Finally even with its diversified set of assets, Kinder Morgan has little exposure to the shale oil infrastructure. Its most exceptionally placed oil asset infrastructure is Transmountain.
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