Bank of America Corp. initiated coverage on shares of NGL Energy Partners (NYSE:NGL) in a research note released on Monday morning, AnalystRatings.Net reports. The firm issued a buy rating and a $33.00 target price on the stock.
“NGL Energy Partners, LP (NGL) is a diversified midstream MLP with four core business lines: 1) water services, 2) crude oil logistics, 3) natural gas liquids (NGL) logistics, and 4) retail propane. NGL management has been successful in diversifying its business through M&A. Since its May 2011 IPO, NGL has consummated $1.7bn of assets and we expect NGL to remain highly acquisitive. We believe NGL’s aggressive M&A strategy could drive mid-teens cash distribution growth; however, we estimate its base business of assets have moderate growth potential. Despite this, we believe NGL’s current 6.6% yield versus the AMZ yield of 5.6% does not fairly reflect NGL’s above peer average distribution growth potential expected over the next four quarters and the long-term.,” the firm’s analyst wrote.
Shares of NGL Energy Partners (NYSE: NGL) opened at 28.92 on Monday. NGL Energy Partners has a 52 week low of $21.19 and a 52 week high of $31.59. The stock’s 50-day moving average is currently $29.39. The company has a market cap of $1.551 billion and a P/E ratio of 30.38.
A number of other firms have also recently commented on NGL. Analysts at Zacks upgraded shares of NGL Energy Partners from an underperform rating to a neutral rating in a research note to investors on Wednesday, July 17th. They now have a $29.80 price target on the stock. Finally, analysts at Robert W. Baird downgraded shares of NGL Energy Partners from an outperform rating to a neutral rating in a research note to investors on Monday, April 29th. They now have a $29.00 price target on the stock.
Two analysts have rated the stock with a hold rating and three have issued a buy rating to the company. The company currently has a consensus rating of Buy and an average target price of $31.20.
NGL Energy Partners LP is a limited partnership company formed to own and operate a vertically-integrated propane business.