Wells Fargo Downgrades Ferrellgas Partners LP (FGP) to Underperform; Lowering Estimates After Disappointing Q2

Wells Fargo downgraded Ferrellgas Partners LP (NYSE: FGP) from Market Perform to Underperform with a price target range cut from $16-18 to $11-$13.

Wells analyst said, "Given recent results, distribution coverage well below 1.0x and elevated leverage ratios, there is a higher degree of risk to the current level of distribution payment going forward, in our opinion...FGP reported Q2 2011 results that were well below our estimates due to lower than expected volumes and gross margin from other gas sales that fell well short of our expectations. Further, operating expense for the quarter came in $8 million above our estimate. We are lowering our FY2012 and FY2013 DCF per unit estimates to $0.97 and $1.44, respectively, from $1.32 and $1.60 mainly due to Q2 results and more conservative propane sales volumes."

For an analyst ratings summary and ratings history on Ferrellgas Partners LP click here. For more ratings news on Ferrellgas Partners LP click here.

Shares of Ferrellgas Partners LP closed at $16.69 yesterday.

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