UPDATE: Global Hunter Downgrades Crosstex Energy to Accumulate, Lowers PT
In a report published earlier today, Global Hunter Securities, LLC downgraded its rating on Crosstex Energy, L.P. (NASDAQ: XTEX) from Buy to Accumulate, and lowered its price target from $21.00 to $18.00.
Global Hunter went on to say “We are downgrading a handful of natural gas gathering & processing MLPs and revising estimates based on our belief that the NGL market environment will favor lower ethane and propane prices going forward. We believe a weakening US economy, high propane inventories (and prices) and continued weakness in natural gas prices all indicate a higher risk that NGL prices stay lower for longer. This results in caution toward the gathering & processing subsegment. We recommend positioning defensively going into the Q2:12 reporting season, favoring fee-based, diversified MLPs with low exposure to unhedged NGLs.”
Crosstex Energy, L.P. closed on Friday at $16.40.
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Tags: Global Hunter Securities