FBR Capital Downgrades Legacy Reserves (LGCY) to Underperform

FBR Capital downgraded Legacy Reserves (NASDAQ: LGCY) from Market Perform to Underperform with a price target of $2.00 (from $1.00) on valuation.

Analyst Chad Mabry commented, "We have witnessed unprecedented volatility in the MLP sector in 2016 as investor sentiment has shifted from wholesale energy aversion in January/February to an embrace of oil upside in March/April. An example of the latter is LGCY, which has gained 218% quarter to date, vs. flat performance in the S&P 500 index, despite suspending distributions. In our view, the driver is exposure to oil price upside (the partnership is only hedged on 10% of its 2017E oil production). We are increasing our price target to $2 (from $1) but downgrading to Underperform (from Market Perform) on valuation as we believe units appear to be ahead of such a recovery."

For an analyst ratings summary and ratings history on Legacy Reserves click here. For more ratings news on Legacy Reserves click here.

Shares of Legacy Reserves closed at $3.12 yesterday.

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