Global Hunter Securities Downgrades Regency Energy Partners (RGP) to Accumulate

May 10, 2012 9:00 AM EDT
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Price: $23.47 --0%

Rating Summary:
    4 Buy, 6 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Global Hunter Securities downgraded Regency Energy Partners (NYSE: RGP) from Buy to Accumulate with a price target lowered from $30 to $25.

Analyst, Bernard Colson, said, "While RGP had an in-line operational quarter, it failed to raise its distribution sequentially. We now view distribution increases for the remainder of 2012 as unlikely, given that continued deterioration in the Haynesville JV is likely to at least partially offset improvement in the Gathering & Processing segment. Given the lack of distribution growth for the next year or more, we are revising our target yield to 7.5% from 6.5%. As a result of RGP's recent unit underperformance, we still see approximately 18% total return prospects in RGP to the new price target, so we are only downgrading it to Accumulate. We still prefer it to sister company Energy Transfer Partners (NYSE: ETP)."

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

Shares of Regency Energy Partners closed at $22.81 yesterday.

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