UPDATE: UBS Downgrades Western Gas Partners (WES) to Neutral on Valuation

October 8, 2012 8:42 AM EDT Send to a Friend
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Price: $73.77 +2.59%

Rating Summary:
    12 Buy, 1 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 23
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(Updated - October 8, 2012 12:51 PM EDT)

UBS downgraded Western Gas Partners (NYSE: WES) from Buy to Neutral on valuation. The firm raised their price target from $48 to $51.

With shares up ~20% over the past three months and up 60% over the last year this has left WES at a current 3.7% yield with a larger yield spread vs. the Alerian MLP index (AMZ) than witnessed since the crisis of early 2009 - despite the AMZ now also approaching all-time low yields.

"Trading at historically low yield and peer-leading trading multiples, we think this now leaves too much execution risk for WES unitholders despite peer-leading growth estimates," analyst Ronald J. Barone comments. "Despite our positive view on WES's management, vision and growth, we thus move to Neutral."

For an analyst ratings summary and ratings history on Western Gas Partners click here. For more ratings news on Western Gas Partners click here.

Shares of Western Gas Partners closed at $52.24 yesterday.


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