Citigroup Maintains Hold On AmeriGas

Citigroup has published a research report on AmeriGas Partners

upon the belief that the company is well positioned to stand the tough winter. In the report, Citigroup writes "We are maintaining our Hold/ Medium Risk (2M) rating for Amerigas Partners LP despite the partnership's best-in-class coverage ratio and strong balance sheet. In our opinion, APU's valuation remains slightly less compelling relative to some of its comps. Regardless, APU offers investors dependable cash flows and distribution growth potential of ~4% that is supported by its 1.4x coverage ratio. All things being equal, we would consider being more positive on APU if the units fall below the $45/unit range." Citigroup also maintains its $49 price target on AmeriGas Partners, which closed yesterday at $47.63.