BMO maintains Keyera stock with Cdn$45.50 target following EBITDA beat

Published 13/02/2025, 23:02
BMO maintains Keyera stock with Cdn$45.50 target following EBITDA beat

On Thursday, BMO Capital Markets maintained its Market Perform rating on Keyera Corp . (TSX:KEY:CN) (OTC: KEYUF), with a steady price target of Cdn$45.50. The stock experienced a notable increase at the opening of the market, surging by 4% before settling at a 2% gain by the end of the day. This performance slightly outpaced its industry counterparts. The initial rise in Keyera's stock price is attributed to the company's EBITDA, which surpassed expectations by approximately 9%, and the positive momentum generated from new growth projects.

BMO Capital Markets is closely monitoring Keyera's next steps, particularly the company's initiation of its 2025 marketing guidance. The firm's estimate stands at $330 million, a slight decrease from the previous $350 million. Additionally, key project sanctions are anticipated later in the year, including KAPS Zone 4 and KFS III, with expected in-service dates in 2027 and 2028, respectively.

The implications of U.S. tariffs are also a focal point for BMO Capital Markets, considering that around 85% of Keyera's iso-octane is exported to the United States. This factor could significantly influence the company's financial performance going forward.

Keyera's recent EBITDA outperformance and the developments in its growth projects have contributed to the stock's resilience in the market. The company's future activities, such as the provision of marketing guidance and the progress of its sanctioned projects, along with the potential impact of U.S. tariffs, are key elements that investors are watching as they assess the company's trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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