Keyera Corp. Hold Rating: Balancing Growth Prospects and Market Expectations

Benjamin Pham, an analyst from BMO Capital, maintained the Hold rating on Keyera Corp. (KEY – Research Report). The associated price target is C$45.50.

Benjamin Pham has given his Hold rating due to a combination of factors related to Keyera Corp.’s recent performance and future prospects. The company’s Q1 2025 results were generally in line with expectations, with adjusted EBITDA closely matching consensus estimates. Despite robust growth in certain areas like gas processing and frac capacity, the marketing contribution is normalizing from previously high returns, which suggests a stabilization rather than an acceleration in growth.
Pham notes that while Keyera has reaffirmed its guidance for 2025, including growth and maintenance capital expenditures, as well as cash tax expectations, the market was somewhat disappointed by the marketing guidance falling short of consensus. Additionally, although Keyera’s shares underperformed recently, the company has several ongoing projects that could drive future growth, such as the KFS Frac III project and KAPS Zone 4. These factors, combined with a balanced view of potential upside and downside catalysts, support the decision to maintain a Hold rating.

In another report released today, Barclays also maintained a Hold rating on the stock with a C$42.00 price target.

KEY’s price has also changed slightly for the past six months – from C$45.110 to C$43.320, which is a -3.97% drop .