Shares of Kinder Morgan Inc. /zigman2/quotes/208455654/composite KMI +0.14% rose 0.6% in afternoon trading Wednesday, but lagged the broader energy sector's rally after the oil and gas pipeline and terminals operator was downgraded at Raymond James on concerns over valuation. Analyst Justin Jenkins cut his rating to market perform from outperform while keeping his stock price target at $21. "[Kinder Morgan's stock] has been on a strong run YTD (up about 35%), seemingly fueled by both insider buying and the company's 'name-brand' recognition with the generalist crowd," Jenkins wrote in a note to clients. The stock had closed at a 2-year high of $21.38 last Friday. Meanwhile, the SPDR Energy Select Sector ETF /zigman2/quotes/206420077/composite XLE -0.96% surged 2.1% with 28 of 29 components gaining ground, and with 23 stock rising by more than 1%, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.03% edged up 68 points, or 0.3%. The sector was rallying as crude oil futures surged 2.7% after government data showed a large drop in crude supply. Separately, Raymond James' Jenkins also downgraded Genesis Energy L.P. /zigman2/quotes/209652678/composite GEL -1.20% to market perform from outperform and Holly Energy Partners L.P. /zigman2/quotes/202169566/composite HEP -1.12% to underperform from market perform, while upgrading Williams Companies /zigman2/quotes/205467183/composite WMB -1.61% to strong buy from outperform.