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