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UPDATE: Oppenheimer Initiates Coverage on Williams Partners on Mixed Factors

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In a report published Wednesday, Oppenheimer analyst Bernard Colson initiated coverage on Williams Partners LP (NYSE: WPZ) with a Perform rating.

In the report, Oppenheimer noted, “We initiate coverage of Williams Partners (WPZ) with a Perform rating and do not assign a price target. Fundamentals of the dry natural gas business remain challenged. This is being offset by liquids-rich businesses including Marcellus gathering & processing. And while the outlook is positive for the ethylene production business, we are concerned with WPZ's commodity price exposure. In addition, distribution coverage is expected to remain below 1x through 2014. We appreciate management's confidence in the future (they continue to raise the distribution at a rapid rate despite weak coverage) but question this strategy given our preference for a more conservative approach.”

Williams Partners LP closed on Tuesday at $49.42.

Latest Ratings for WPZ

DateFirmActionFromTo
Sep 2014BMO CapitalInitiates Coverage onMarket Perform
Jun 2014UBSInitiates Coverage onNeutral
Jun 2014CitigroupReinstatesBuy

View More Analyst Ratings for WPZ
View the Latest Analyst Ratings

Posted-In: Bernard Colson OppenheimerAnalyst Color Initiation Analyst Ratings

 

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