UBS Maintains a 'Neutral' on Inergy (NRGY); Becoming a Pure Play Midstream GP

UBS maintains a 'Neutral' on Inergy (NYSE: NRGY) price target raised from $14 to $19.

Analyst, Ronald J. Barone, said, "NRGY agreed to sell its retail propane business to SPH for consideration of $1.8B, consisting of $1B in Suburban Propane notes, $600MM in SPH units and $200MM in cash...NRGY's expected annualized distribution reset came in at $1.50/unit, higher than our $1.40 estimate. Post-deal closing, that distribution will consist of ~$1.15-$1.20 per unit directly from NRGY and ~$0.36 per NRGY unit based upon SPH's current ann. rate of $3.41 per unit. We now model FY13 EPU at $1.19 vs. $0.43 prior."

For an analyst ratings summary and ratings history on Inergy click here. For more ratings news on Inergy click here.

Shares of Inergy closed at $19.08 yesterday.

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