Truist downgrades Kimbell to Hold on high earnings multiple

Truist analyst Neal Dingmann downgraded Kimbell Royalty Partners (KRP) to Hold from Buy with a price target of $16, down from $22. The company continues to pay shareholders a “decent” quarterly distribution but its per share growth remains volatile and the stock’s earnings multiple is as high, the analyst tells investors in a research note. Truist is also becoming more concerned about lower potential activity for Kimbell if commodity prices remain weak. The weaker commodity prices are likely to result in lower distribution beginning this year, contends the firm.