Keyera initiated with a Hold at TD Securities

TD Securities analyst Aaron MacNeil last night initiated coverage of Keyera (KEYUF) with a Hold rating and C$45 price target Companies with natural gas exposure and size advantages ranked best in TD’s scorecard, and should trade at the highest multiples, the analyst tells investors in a research note. The firm says the Canadian Midstream sector offers income-oriented investors low financial volatility and a growing dividend with an attractive yield. TD named Pembina its top pick in the group. Keyera’s contracted cash flows are the lowest among the group, the company will need to overcome practical challenges to growth, as a result of broader competitive dynamics, the firm contends.