UPDATE: Citigroup Upgrades PetroLogistics LP to Buy on Favorable Risk/Reward

Citigroup raised its rating on PetroLogistics LP

from Neutral to Buy but reduced its price target from $14.50 to $12.75. Citigroup said, "We upgrade Petrologistics to Buy based on our thesis that: 1) market propylene prices, which currently trade at a discount to Brent crude oil, will correct higher in the near term; 2) propane supplies remain ample due to shale gas fracking and higher propane prices have not yet affected the propylene market; and 3) we expect the propane-to-propylene spread to rise back above 30c/lb in 2013 on higher anticipated propylene prices." PetroLogistics LP closed at $ on Friday.