UPDATE: J.P. Morgan Initiates Coverage on AmeriGas Partners with Neutral Rating, $45 PT

In a report published Wednesday, J.P. Morgan & Co. initiated coverage on AmeriGas Partners LP

with a Neutral rating and $45.00 price target. J.P. Morgan noted, “We are initiating coverage of APU with a Neutral rating and a YE13 price target of $45/unit. Through utilizing the partnership's scale to drive productivity and efficiency, AmeriGas has successfully achieved mid-single-digit growth in the distribution run-rate, periodically enhanced by multiple one-time distributions associated with asset divestitures. Moreover, APU's disciplined approach to acquisitions has historically resulted in a robust B/S (often ~3x debt-to-EBITDA or lower in recent years) complemented by impressive distribution coverage (typically above 1.2x).” AmeriGas Partners LP closed on Tuesday at $44.49.