Why Kinder Morgan (KMI) Stock Is Gaining Today

NEW YORK (TheStreet) -- Kinder Morgan (KMI) shares are up 0.6% to $41.40 on Tuesday after analysts at RBC Capital raised its price target to $45 from $40. 

The upgraded outlook is a result of the deal that combines all of the diversified energy transportation and storage assets under one stock.

Kinder Morgan plans to unify all of its energy stock's under the KMI ticker, consolidating its diversified securities under one umbrella.

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"This transaction dramatically simplifies the Kinder Morgan story, by transitioning from four separately traded equity securities today to one security going forward, and by eliminating the incentive distribution rights and structural subordination of debt," Kimder CEO Richard Kinder recently said.

The new KMI will have a projected dividend of $2.00 that the company expects to grow by 10% yearly from 2015 through 2020.

"[W]e remain positive on KMI's proposed acquisition of KMP, KMR and EPB. KMI has effectively created an MLP in a corporate structure in our view... iven the cash tax savings that KMI can realize through this transaction, we estimate a very low cash tax rate for KMI, which we believe should enable it to effectively compete with MLPs for projects and acquisition," said analysts at the firm.

TheStreet Ratings team rates KINDER MORGAN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

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