UPDATE: Citigroup Cuts Target on AmeriGas Partners to $38

Citigroup reiterates its Sell rating on AmeriGas Partners

and lowers its price target to $38 (previously $39) on declining YoY volumes and EBITDA due to warm weather. Citigroup says, "— APU reported disappointing 1Q:12 results with adj EBITDA of $84.3 mil compared to our estimate of $109.6 mil and consensus of $110.8 mil. The primary driver for the shortfall was a 14% YOY decline in volumes due to unusually warm weather during the quarter. A modest increase in margins was unable to offset a volume reduction of this magnitude. APU increased distributions by $0.0225/unit (3%) sequentially to $0.7625/unit ($3.05 annualized), up 8.2% YoY following the closing of the Heritage Propane acquisition. Distribution coverage was 0.92x on an LTM basis." APU closed at $42.87 a share on Friday.