UPDATE: Morgan Stanley Initiates Coverage on PetroLogistics

Morgan Stanley initiates coverage with an Overweight rating on PetroLogistics

and a price target of $17. Morgan Stanley notes, “MLP PetroLogistics profits from the spread between propylene prices and propane costs. While this spread has narrowed recently, propane should remain weak through 1H13 and propylene should recover over the next six months. Our base-case scenario suggests an attractive ~11% NTM yield.” PDH closed at $15.15 yesterday.