Market Overview

UPDATE: Citigroup Upgrades PetroLogistics LP to Buy on Sustainable Propane-to-Propylene Spreads

Related PDH
10 U.S. Basic Materials & Energy Stocks With Strong Q2'14 Earnings Estimates
Dow Chemical to Start Building Ethylene Cracker in Texas - Analyst Blog
PetroLogistics Taken Private in $2.1B Deal (Fox Business)

Citigroup upgraded PetroLogistics LP (NYSE: PDH) from Neutral to Buy and raised the price target from $14.00 to $17.00.

Citigroup commented, "We are upgrading PDH to Buy (TP $17) as the propane-topropylene spread has expanded recently to above 40c/lb from an average of 31c/lb in 4Q12 given the warmer-than-average winter. … We are raising our NTM distribution/unit to $1.70 (+20c) driven by higher spreads and including an estimated 6c hit from the recent outage. We also lower our target yield to 10% from 11% based on similar variable rate MLPs comparables."

PetroLogistics LP closed at $14.57 on Monday.

Posted-In: CitigroupAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (PDH)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters