UPDATE: Citigroup Downgrades Petrologistics LP to Neutral on Poor Propylene Visibility

Citigroup reduced its rating on Petrologistics LP

from Buy to Neutral, both High-Risk, with a reiterated $12.75 price target. Citigroup noted, "There is limited visibility on the propane-topropylene spread widening in the near term, in our opinion. As propylene price increases have likely been delayed by one quarter, we have lowered our 3Q distribution/unit to 27c (-6c), but raised 4Q to 38c (+6c). Our target price remains unchanged at $12.75/unit. The units carry an attractive yield of ~12%, so investors are getting paid to wait for spreads to improve. However, underlying volatility is high and we prefer to wait for a better entry point when visibility improves." Petrologistics LP closed at $13.07 on Monday.