UGI Corporation initiated with a Neutral at Mizuho

Mizuho analyst Gabriel Moreen initiated coverage of UGI Corporation with a Neutral rating and $38 price target. The firm expects the company to experience medium-term weakness at its liquefied petroleum gas businesses in the form of softer margins and higher capex in order to achieve a "rebuild" of the subsidiaries that typically generate cash flow for UGI’s corporate obligations. While favorable execution on its renewables projects could provide an upside catalyst, enthusiasm is tempered by UGI’s higher leverage on the corporate balance sheet, the analyst tells investors in a research note.