Scotiabank Issues Pessimistic Estimate for Keyera Earnings

Key Points

• Scotiabank lowered its FY2027 EPS estimate for Keyera to C$2.90 from C$3.00, while maintaining a “Sector Outperform” rating and C$66 price target.
• Analyst sentiment remains broadly positive: 11 analysts rate Keyera a Buy and four rate it a Hold, producing a consensus “Moderate Buy” rating and C$73 price target.
• Keyera increased its quarterly dividend to C$0.5625, or C$2.25 annualized, representing a 4.1% yield; a company director also purchased 500 shares worth about C$27,870.

Keyera Corp. (TSE:KEY - Free Report) - Investment analysts at Scotiabank dropped their FY2027 earnings per share estimates for shares of Keyera in a report issued on Thursday, September 17th. Scotiabank analyst R. Hope now forecasts that the company will post earnings per share of $2.90 for the year, down from their previous estimate of $3.00. Scotiabank has a "Sector Outperform" rating and a $66.00 price objective on the stock. The consensus estimate for Keyera's current full-year earnings is $2.22 per share.

A number of other equities research analysts have also recently commented on the company. Citigroup increased their price target on Keyera from C$102.00 to C$106.00 and gave the company a "buy" rating in a research note on Friday, September 4th. BMO Capital Markets dropped their price target on Keyera from C$65.00 to C$64.00 and set an "outperform" rating on the stock in a research note on Friday, September 4th. Canadian Imperial Bank of Commerce upped their price objective on shares of Keyera from C$63.00 to C$65.00 in a report on Tuesday, June 16th. Stifel Nicolaus increased their price objective on shares of Keyera from C$85.00 to C$90.00 and gave the company a "hold" rating in a research report on Friday, September 4th. Finally, Desjardins lifted their price objective on shares of Keyera from C$103.00 to C$112.00 and gave the stock a "buy" rating in a research note on Friday, September 4th. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of C$73.00.

Keyera Stock Performance

TSE:KEY opened at C$54.96 on Monday. The stock has a market capitalization of C$16.13 billion, a price-to-earnings ratio of 35.92, a PEG ratio of 1.35 and a beta of 0.46. Keyera has a 52 week low of C$40.09 and a 52 week high of C$61.41. The company has a quick ratio of 0.57, a current ratio of 1.22 and a debt-to-equity ratio of 160.65. The firm has a 50 day moving average of C$58.28 and a 200 day moving average of C$55.88.

Keyera (TSE:KEY - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported C$1.19 earnings per share (EPS) for the quarter. The business had revenue of C$2.40 billion for the quarter. Keyera had a return on equity of 10.81% and a net margin of 5.02%.

Insider Activity

In other news, Director Taylor Timothy Kitchen bought 500 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The stock was purchased at an average price of C$55.74 per share, with a total value of C$27,870.00. Following the completion of the acquisition, the director directly owned 7,500 shares of the company's stock, valued at C$418,050. This trade represents a 7.14% increase in their position. 0.39% of the stock is currently owned by insiders.

Keyera Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 29th will be paid a $0.5625 dividend. The ex-dividend date is Tuesday, September 15th. This is a positive change from Keyera's previous quarterly dividend of $0.54. This represents a $2.25 annualized dividend and a dividend yield of 4.1%. Keyera's dividend payout ratio (DPR) is 141.18%.

About Keyera

Keyera is a midstream energy business that operates primarily out of Alberta, Canada. Its primary lines of business consist of the gathering and processing of natural gas in western Canada, the storage, transportation, and liquids blending for NGLS and crude oil, and the marketing of NGLs, iso-octane, and crude oil. The firm currently has interests in about a dozen active gas plants and operates over 4,000 km of pipelines.

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