UPDATE: Jefferies Initiates Coverage on UGI Corporation with Hold Rating, $43 PT on Fair Valuation

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on

with a Hold rating and $43.00 price target. In the report, Jefferies noted, “UGI's history of solid execution, strong FCF and articulated growth strategy have enabled a diversification of its business mix and impressive LT EPS and dividend growth. However, shares are up 26% over the LTM, outpacing a marketcap-weighted peer index by ~1300 bps & trimming UGI's F2Y peer PE discount. We believe UGI's asset mix will result in sustained PE discounts vs. peers & see shares as fairly valued at current levels; we initiate at Hold.” UGI Corporation closed on Tuesday at $39.20.