M* has a "fair value" of $56, a "consider buying" price of $44.80 and a "consider selling" price of $70, which are useful parameters for long-term investors who recognize long-term does not mean forever.
They are also concerned that KMP is now in the "high splits", which means the GP gets an increasing share of KMP's distributable cash flow; they don't believe KMP will be able to increase distributions to limited partners much more than 5% per year, even though they expect DCF to grow 14% in 2010, for example. Other analysts have echoed that concern. They also believe 2010 performance will be tied principally to oil prices, with pipeline revenues increasing less than CO2 revenues.
I'm concerned that KMP has dropped steadily since their Analysts' Day meeting. although other MLPs have as well. I look at that as a tell and I am considering moving some money out of KMP, though certainly not all.
I just looked at the pipeline sector, saw KMP is down 2.57% for the day, 4.75% for the week but up for the month, while the sector as a whole is down 2.27% today, 5.96% for the week and down a tiny bit for the month. That tells me KMP' performance is comparable with the sector, though it certainly has not been leading it up lately!
Morningstar has zero credibility on MLPs. M* had XTEX(Crosstex) rated 5 stars before it crashed and burned. Their analysis of MLP proved itself fatally flawed and I will never believe anything their say about MLP's.