UPDATE: Jefferies Initiates Coverage on AmeriGas Partners LP on Favorable Risk/Reward

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on

with a Buy rating and $50.00 price target. In the report, Jefferies noted, “With a national footprint, market-leading sales position, robust '13E coverage (~1.3x), and affiliation with UGI, we believe APU offers best-in-class exposure to US propane distribution. While demand remains weather-sensitive and in LT structural decline, we believe APU's roll-up acquisition strategy & the ongoing realization of Heritage-related synergies will drive a ~5% distribution CAGR through 2017. We see favorable risk/reward & are initiating with a Buy.” AmeriGas Partners LP closed on Tuesday at $42.50.