UPDATE: Jefferies Initiates Coverage on Kinder Morgan Management LLC on Minimal Upside Forecast

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on Kinder Morgan Management LLC (NYSE: KMR) with a Hold rating and $85.00 price target.

In the report, Jefferies noted, “While KMR offers an additional investment vehicle into Kinder Morgan Energy Partners (KMP) for investors seeking to avoid K-1 distributions and unrelated business taxable income (UBTI), we believe a 50% discount to KMP's forecasted 12-month yield should be ascribed to KMR given the lack of cash received today. KMR currently trades at a ~3.5% discount to KMP's unit price, and we forecast minimal upside. Initiate with a Hold.”

Kinder Morgan Management LLC closed on Tuesday at $79.84.