UPDATE - UBS Downgraded Boardwalk Pipeline Partners (BWP) to Neutral on Lower Growth Outlook

UPDATE - UBS downgraded Boardwalk Pipeline Partners (NYSE: BWP) from Buy to Neutral. PT cut from $36 to $33.50.

UBS analyst says, "Oer the past six quarters, natgas basis differentials have remained very tight versus historical levels, thereby depressing pipeline contract renewal rates. Similarly, declining natgas seasonal spreads drove a 65% decrease in 1Q11 parking and lending revenues (only ~3% of BWP’s revenues). Due to these weak fundamentals, mgmt decreased BWP’s rate of distribution increase to $0.025/unit versus the $0.05/unit increase over the past 12 quarters. Factoring in a moderated growth rate, we are downgrading BWP."

UBS cuts FY11 EPS estimate from $1.45 to $1.33 and FY12 from $1.53 to $1.39.

To see all upgrades/downgrades on shares of BWP, visit our Analyst Ratings page.

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