NEW YORK (TheStreet) -- Shares of Kinder Morgan (KMI) - Get Report were up in late-afternoon trading on Tuesday after RBC Capital Markets noted that the Houston-based pipeline company's backlog of projects should help it hike its dividend starting in 2018, Barron's reports.
The firm increased its dividend estimates, which were previously 50 cents a share each year, to $1, $1.60 and $2 in 2018, 2019 and 2020, respectively.
The higher dividend expectations led RBC to increase its price target to $25 from $21 on the stock, Barron's adds.
The price target also reflects multiple expansion due to recent midstream M&A activity and a "seemingly more challenging permitting environment," RBC stated.
But Kinder Morgan's high debt load caused RBC to maintain its "sector perform" rating on shares.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.
Kinder Morgan's strengths such as its increase in net income, expanding profit margins and good cash flow from operations are countered by weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: KMI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.