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UPDATE: Citigroup Upgrades PetroLogistics LP to Buy on Sustainable Propane-to-Propylene Spreads

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Citigroup upgraded PetroLogistics LP (NYSE: PDH) from Neutral to Buy and raised the price target from $14.00 to $17.00.

Citigroup commented, "We are upgrading PDH to Buy (TP $17) as the propane-topropylene spread has expanded recently to above 40c/lb from an average of 31c/lb in 4Q12 given the warmer-than-average winter. … We are raising our NTM distribution/unit to $1.70 (+20c) driven by higher spreads and including an estimated 6c hit from the recent outage. We also lower our target yield to 10% from 11% based on similar variable rate MLPs comparables."

PetroLogistics LP closed at $14.57 on Monday.

Latest Ratings for PDH

Jul 2014CitigroupMaintainsNeutral
Apr 2014Stifel NicolausMaintainsBuy
Dec 2013Morgan StanleyDowngradesOverweightEqual-Weight

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Posted-In: CitigroupAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings


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