UBS Cuts Price Target as Ferrellgas Partners (FGP) Contemplates Distribution Cut
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
UBS maintained a Sell rating on Ferrellgas Partners LP (NYSE: FGP), and cut the price target to $6.50 (from $10.00), as the company contemplates a reduction of its distribution to $1.00/unit from $2.05/unit on an annualized basis.
Analyst Shneur Gershuni commented, "With its FY4Q earnings, FGP noted that due to increased leverage and higher debt levels, from increased debt from the Bridger acquisition, the Jamex settlement and the effect of warmer weather on propane earnings that its board is contemplating a reduction of its distribution to $1.00/unit from $2.05/unit on an annualized basis. This decision is not final, but is an option to reduce its leverage and remain in compliance with its covenants. However, with September and October weather warmer than normal and running a distribution cut to $1.00/unit through our model, without accounting for a much colder than normal winter, we estimate that FGP would not remain in compliance with is covenants. Hence, we expect FGP to cut its distribution by 75% to $0.51/unit on an annualized basis in order to be in compliance with its amended covenants."
Shares of Ferrellgas Partners LP closed at $7.54 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- BMO Capital Raises Price Target on Dollar Tree (DLTR) to $96; Reiterates Market Perform
- KLR Group Cuts Price Target on Bill Barrett (BBG) to $9; Reiterates Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesUBS, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!