Skip to main content

Market Overview

Bank Of America Comments On Suburban Propane Partners After Recent Earnings Release

Share:

Suburban Propane Partners (NYSE: SPH) reported 2Q11 adjust EBITDA of $111.6mn, below recently lowered Bank of America Merrill Lynch's (BofAML) expectations of $120.3mn and the consensus estimate of $118.5mn. Despite colder than normal weather, SPH's retail propane volume declines have accelerated with retail propane down 8.4% YoY, although fuel oil volume declines have moderated, down 12% YoY.

SPH has made some M&A progress over the past 18 months, executing five acquisitions, improving volumes by 7.5-8mn gallons on an annualized basis, although BofAmL notes SPH did not close any acquisitions in 2Q11. BofAML believes SPH is well positioned to execute more bolt-on acquisitions, but expect SPH to maintain a conservative M&A approach given a fairly expensive asset M&A market.

BofAML has a $54 PT and Neutral rating on Suburban Propane Partners

SPH closed Friday at $53.95

 

Related Articles (SPH)

View Comments and Join the Discussion!

Posted-In: Bank of America Merrill LynchAnalyst Color Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
VORStifelInitiates Coverage On58.0
VORGoldman SachsInitiates Coverage On19.0
TERNJP MorganInitiates Coverage On32.0
TERNCowen & Co.Initiates Coverage On
TERNGoldman SachsInitiates Coverage On29.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com