UPDATE: Credit Suisse Reiterates Neutral Rating, Raises PT on Rentech Nitrogen Partners LP as Improvement is Expected in 2015

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In a report published Wednesday, Credit Suisse analyst Christopher S. Parkinson reiterated a Neutral rating on
Rentech Nitrogen Partners LPRNF
, and raised the price target from $16.00 to $17.00. In the report, Credit Suisse noted, "RNF reported adj 4Q14 EPU of $0.06 vs. our $0.35 est and consensus of $0.30. Net adjustments of $0.14 per unit include the loss allocated to unvested units and income from the Agrifos settlement. The primary miss to our est resulted from lower sales volume of ammonia (shifted to 1H15) and UAN with a weaker ammonia price. We highlight the $0.30 DPU was in excess of DCF of $0.14, and we expect the delta ($6.3mm or $0.16/unit) will be recaptured during 2015. We are increasing our 2015 DPU to $1.72 (from $1.68) due to greater 1H ammonia sales partially offset by a $6.3mm cash replenishment. We are also adjusting our '16 DPU to $1.65 (from $1.72), which is below our '15 est to incorporate a turnaround at E. Dubuque in '16. Our TP rises to $17, utilizing a 10% yield." Rentech Nitrogen Partners LP closed on Tuesday at $15.31.
Posted In: Analyst ColorPrice TargetAnalyst RatingsChristopher S. ParkinsonCredit Suisse
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