Wells Fargo Upgrades AmeriGas Partners (APU) to Market Perform, Shares Have Fallen 18% Since February

Wells Fargo upgraded shares of AmeriGas Partners (NYSE: APU) to a Market Perform rating from its previous rating of Underperform while maintaining its valuation range of $42-$44.

The firm notes that the upgrade follows a 18 percent decrease in the stocks price since February and its Q3 results which fell roughly inline with the firms expectations.

Propane gallons sales during Q3 were up 3 percent year over year to 155.1 million with a gross profit per gallon of $0.93, ahead of the firms estimate of 148.6 million gallons at a gross profit of $0.92 per gallon.

Wells Fargo believes that AmeriGas Partners will continue to increase its dividend payout by an average of 5 percent over the next three years.

The firm decreased its 2011 and and 2012 DCF estimates slightly from $3.91 and $3.93 to $3.89 and $3.90.

For more ratings news on AmeriGas Partners click here and for the rating history of AmeriGas Partners click here.

Shares of AmeriGas Partners closed at $42.45 yesterday.

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