Barclays Cutting PT & Estimates on Copano Energy (CPNO) Due to Lower 2013 Distribution/Higher Yield Assumptions

May 11, 2012 12:51 PM EDT
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Price: $40.21 --0%

Rating Summary:
    2 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Barclays maintains an 'Equalweight' on Copano Energy (NASDAQ: CPNO) price target lowered from $37 to $31.

Analyst, Helen Ryoo, said, "We are reducing our target yield based on our view that it could take more than a year for CPNO to start raising its distribution. We note that G&P MLPs with flat distribution outlooks trades at yields of 7.5-8%. While we cut our distribution growth forecast for 2013 to 2%, down from 5% assumed previously, we do not believe CPNO's distribution is at risk, given its manageable level of leverage and ample liquidity to execute on a majority of its 2012 capex budget."

Ryoo is taking a wait-and-see approach, saying the company's long-term outlook is unchanged, but CPNO will have to execute, deploying capital to organic projects to growth distribution. Ryoo doesn't expect CPNO will have the need to raise capital until year end. FY12 EPS estimate cut from $0.82 to -1.71 and FY13 from $1.34 to $1.11.

For an analyst ratings summary and ratings history on Copano Energy click here. For more ratings news on Copano Energy click here.

Shares of Copano Energy closed at $30.90 yesterday.

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