Goldman Sachs Neutral On Suburban Propane Partners (SPH)

Goldman Sachs has a Neutral rating and a $54 price target on Suburban Propane Partners, L.P. SPH. In a research report sent to clients, Goldman writes, "We maintain our Neutral rating on Suburban and our 12-month, yield-based target price of $54 that implies 3% total return potential. We continue to have a negative secular view on propane distribution as a less-attractive alternative to cheaper natural gas and general customer conservation measures. However, our positive view on Suburban's financial health offsets macro negativity and keeps us as Neutral, largely as we believe the partnership has the capacity to add market share via asset acquisitions. Risks to our Neutral rating and target price include weather and propane margin volatility, a faster- or slower-than-expected recovery to the domestic economy, and the accretion or dilution of potential acquisitions." Shares of SPH lost 29 cents on Friday to close at $55.57, a loss of 0.5%.