UBS Maintains a 'Neutral' on Inergy (NRGY); Expect More Difficulty Ahead

March 15, 2012 11:10 AM EDT Send to a Friend
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Price: $13.52 --0%

Rating Summary:
    7 Buy, 3 Hold, 1 Sell

Rating Trend: = Flat

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    Up: 0 | Down: 0 | New: 10
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UBS maintains a 'Neutral' on Inergy (NYSE: NRGY) price target cut from $18 to $14.

UBS analyst said, "In Jan 2012, NRGY announced it would likely reset its distribution lower at its March quarter distribution announcement, stating it would reset to a “level that is supportable by the cash flow expected to be generated by Inergy’s businesses in the near-term.” Although we had previously expected its ann. distribution to be reset to ~$1.80 (from $2.82), we are lowering our forecast to ~$1.40 given recent weather and FGP F2Q12 (Nov-Jan) results that indicate NT conditions worse than previously forecast."

"Lowering Our FY12e EPU from $0.22 to $0.15 (Cons $0.16): Driving our lower FY12e EPU is F2Qe (March-end), which falls to $0.39 (cons $0.57) given a) the early read from FGP’s disappointing Jan quarter; b) weather YTD that we estimate has been 16% warmer than year ago—slightly worse than the 15.5% increase NRGY reported in its F1Q; and c) more difficult 2-year stacked retail propane volume comparisons in F2Q vs. F1Q."

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

Shares of Inergy closed at $15.82 yesterday.


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