UPDATE: Bank of America Downgrades American Midstream LP to Neutral

Bank of America lowers its rating on American Midstream LP

on valuation. The price objective, however, goes up $1 to $22 on revised 2-13 Q1 estimates. Bank of America says, "We are downgrading AMID to Neutral (from Buy) for the following reasons: 1) we view AMID's recent outperformance adequately reflects its positive characteristics- YTD as of 7 March 2012, AMID has produced a total return of 26.1% versus 5.1% for the Alerian MLP Total Return Index (AMZX), 2) recent declines in ethane and propane prices (ethane prices currently around $0.50/gal, down from a recent high of $0.96/gal in October 2011) may impact gross margins as AMID has limited hedges in place beyond 2012 (AMID is ~80% hedged in 2012), and 3) operational issues around some of AMID's assets may be a near-term headwind." AMID closed at $22.79 a share yesterday.