UPDATE: J.P. Morgan Initiates Coverage on Suburban Propane Partners with Neutral Rating, $43 PT

In a report published Wednesday, J.P. Morgan & Co. initiated coverage on Suburban Propane Partners LP (NYSE: SPH) with a Neutral rating and $43.00 price target.

J.P. Morgan noted, “We are initiating coverage of Suburban Propane with a Neutral rating and a YE13 price target of $43/unit. Until recently, Suburban achieved steady distribution growth through streamlining cost structures, investing in technology and employees, optimizing customer mix, and generally wringing out efficiencies wherever possible. However, recent economic weakness, combined with rising propane prices and an unusually warm winter, has taken its toll on the partnership, driving distribution coverage below 1.0x.”

Suburban Propane Partners LP closed on Tuesday at $43.00.