Market Overview

UPDATE: Wunderlich Securities Reiterates On NGL Energy Partners LP On Organic Projects To Support Growth

Related NGL
Earnings Scheduled For May 26, 2016
After-Hours Recap: The Markets' Big Week And Some After-Hours Movers
NGL Energy Partners' (NGL) CEO Mike Krimbill on Q4 2016 Results - Earnings Call Transcript (Seeking Alpha)

In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha reiterated a Buy rating on NGL Energy Partners LP (NYSE: NGL), and raised the price target from $41.00 to $44.00.

In the report, Wunderlich Securities noted, “NGL Energy Partners (NGL) reported 4Q14 Adj. EBITDA of $116mm, beating our estimate of $106mm and the consensus of $105mm. Distributions increased 3.9% sequentially to $0.55/unit. The company reaffirmed its FY2015 EBITDA guidance of $425-430mm. However, it also raised the capex guidance from $300mm to $500mm as it intends to sharply focus on internal projects. NGL guided to a distribution growth of 15% and 10%+ for FY2015 and FY2016 mainly driven by organic activities.

"We are raising our price target from $41 to $44 as we get more confidence in its growth trajectory that is now backed by an even stronger coverage ratio of 1.4x. We also reduced our discount rate from 10% to 9.8% as we think organic projects would be more certain and less risky.”

NGL Energy Partners LP closed on Tuesday at $39.90.

Latest Ratings for NGL

May 2016WunderlichMaintainsHold
Apr 2016Bank of AmericaUpgradesUnderperformNeutral
Apr 2016BarclaysAssumesEqual-weight

View More Analyst Ratings for NGL
View the Latest Analyst Ratings

Posted-In: Abhishek Sinha Wunderlich SecuritiesAnalyst Color Price Target Analyst Ratings


Related Articles (NGL)

View Comments and Join the Discussion!