Barclays Maintains an 'Underweight' on Ferrellgas Partners (FGP); Cutting Numbers After 1Q Miss

Barclays maintains an 'Underweight' on Ferrellgas Partners LP (NYSE: FGP) price target cut $1 to $20.

Barclays analyst says, "We are lowering our price target to reflect a Q1 miss and a cautious outlook as we enter the critical winter heating period. FGP reported disappointing Q1 results as rising wholesale prices and customer conservation continue to take their toll on the propane sector. Despite an above-average leverage profile, we expect the propane retailer to remain within its covenant limits and maintain its regular $2.00 per unit annualized distributions. Our $20 price target is based on a 12-month distribution run rate of $2.00 and a target yield of 10% (previously 9.5%), reflecting lower coverage." (Barclays lowers FY12 EPS estimate from $0.49 to $0.27)

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 $19.57 yesterday.

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