Wells Fargo Downgrades QR Energy (QRE) to Market Perform; Near-Term Growing Pains
Tweet Send to a FriendGet Alerts QRE Hot Sheet
Price: $17.38 +0.17%
Rating Summary:
10 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
10 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade QRE Now!
Wells Fargo downgraded QR Energy (NYSE: QRE) from Outperform to Market Perform with a price target range of $17-$19 (from $19-$21).
Analyst, Praneeth Satish, said, "While we view QRE’s 10.9% yield as secure and supported by an expansive hedging portfolio, distribution growth could prove challenging over the next several years, in our view. Notably, we forecast distribution coverage (on a fully diluted basis) could compress in 2013 to approximately 1.0x due to the combination of higher G&A expense (from the termination of a sharing agreement in Q1 2013) and higher interest expense (from QRE’s recently completed high yield debt offering). We are reducing our 2012 and 2013 DCF per unit estimates to $2.02 and $1.93, respectively, from $2.05 and $1.98 primarily to reflect incremental interest expense associated with QRE’s recent high yield debt offering."
For an analyst ratings summary and ratings history on QR Energy click here. For more ratings news on QR Energy click here.
Shares of QR Energy closed at $17.83 yesterday, with a 52 week range of $15.25-$23.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Praneeth Satish, said, "While we view QRE’s 10.9% yield as secure and supported by an expansive hedging portfolio, distribution growth could prove challenging over the next several years, in our view. Notably, we forecast distribution coverage (on a fully diluted basis) could compress in 2013 to approximately 1.0x due to the combination of higher G&A expense (from the termination of a sharing agreement in Q1 2013) and higher interest expense (from QRE’s recently completed high yield debt offering). We are reducing our 2012 and 2013 DCF per unit estimates to $2.02 and $1.93, respectively, from $2.05 and $1.98 primarily to reflect incremental interest expense associated with QRE’s recent high yield debt offering."
For an analyst ratings summary and ratings history on QR Energy click here. For more ratings news on QR Energy click here.
Shares of QR Energy closed at $17.83 yesterday, with a 52 week range of $15.25-$23.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: UBS Downgrades Carnival (CCL) to Neutral; Worst May Not Be Behind
- Microsoft (MSFT) Rally Not Over Says UBS; Raises PT to $40
- UBS Raises PT on Tesoro (TSO)
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst EPS View, Analyst PT Change, DowngradesRelated Entities
Wells Fargo
Login with Facebook
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!
