Market Overview

UPDATE: Bank of America Upgrades Williams Partners LP Following Improvements in NGL Fundamentals/Frac Spreads

Share:
Related WPZ
15 Biggest Mid-Day Gainers For Wednesday
Benzinga's Top Upgrades, Downgrades For January 11, 2017
Inter Pipeline: NGLs Will Power Growth In 2017 (Seeking Alpha)

In a report published Friday, Bank of America analyst Gabe Moreen upgraded the rating on Williams Partners LP (NYSE: WPZ) from Neutral to Buy, and raised the price target from $51.00 to $55.00.

In the report, Bank of America noted, “We upgrade WPZ to Buy (from Neutral) due to recent improvement in natural gas liquid (NGL) fundamentals and frac spreads, the removal of WPZ's near-term equity overhang, and its relative underperformance YTD. While NGL prices remain depressed (down 31% since 2012), we have seen a rebound since June 2013 (up 20%) driven in part by improving propane prices. For propane, it appears recent incremental export capacity coming online has positively impacted prices. We believe improvement in NGL prices and frac spreads (and what may appear to at least be a trough) bodes well for WPZ's commodity sensitive businesses (35% of total 2013E EBITDA) given its less aggressive hedge program. We note our upgrade is not predicated on further NGL price improvement.”

Williams Partners LP closed on Thursday at $49.33.

Latest Ratings for WPZ

DateFirmActionFromTo
Feb 2017Deutsche BankInitiates Coverage OnBuy
Jan 2017Credit SuisseInitiates Coverage OnNeutral
Jan 2017BMO CapitalUpgradesMarket PerformOutperform

View More Analyst Ratings for WPZ
View the Latest Analyst Ratings

Posted-In: Bank of America Gabe MoreenAnalyst Color Upgrades Analyst Ratings

 

Related Articles (WPZ)

View Comments and Join the Discussion!