UPDATE: Stifel Nicolaus Initiates PetroLogistics with Hold on Propane-Prolylene Spread Concerns

Stifel Nicolaus initiates its coverage on PetroLogistics

with a Hold rating. Stifel Nicolaus notes, "We are initiating with a Hold rating and fair value of approximately $14.00 to $17.00 given its peer group. We are forecasting distributions over the next twelve months of $1.56 and FY13 of $1.28. We note our fair value is highly sensitive to the propane-to-propylene spread and our estimates could prove conservative should the spread come in stronger than currently forecasted." PDH closed at $15.15 on Tuesday.