Global Hunter Securities Starts Williams Partners LP (WPZ) at Buy

January 11, 2013 8:51 AM EST Send to a Friend
Get Alerts WPZ Hot Sheet
Price: $53.71 +0.41%

Rating Summary:
    8 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 14 | New: 51
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Global Hunter Securities initiates coverage on Williams Partners LP (NYSE: WPZ) with a Buy. PT $54.00.

The firm comments, "We are attracted to WPZ's size, scale, diversification and fee-based nature. It is developing an attractive group of organic growth projects focused on the Marcellus and its Geismar Olefins business. While 2012 was a year of heavy capital spending and equity issuance, we believe 2013 and 2014 will see the harvest of operating cash flow related to past spending, reduced capex and relatively light equity needs. This should drive 9% annual distribution growth and increasing distribution coverage simultaneously. The largest risk to the story has been mitigated, in our view, with the purchase of Geismar and the accompanying elimination of WPZ's long ethane position. WPZ's commodity exposure has been transformed into a long ethylene position, which we view much more favorably. We believe WPZ's current price doesn't properly reflect its bright outlook."

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

Shares of Williams Partners LP closed at $49.60 yesterday.


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