Shares of Kinder Morgan Energy Partners (KMP) were lower following Prudential's downgrade of the stock to hold from buy.
Analyst Carol Coale says there are growing concerns over increasing competition for asset acquisitions. She says there is rising investor resistance toward complex financial structures and potential regulatory or legislative scrutiny over partnership relationships with affiliates. She says it appears that a greater percentage of cash distributions is generated by depreciation and amortization expense, which has doubled on a per unit basis since 1999. She cut her $41 price target to $32.