UGI Corporation price target lowered to $29 from $33 at Mizuho

Mizuho analyst Gabriel Moreen lowered the firm’s price target on UGI Corporation to $29 from $33 and keeps a Neutral rating on the shares. UGI’s strategic review announced last week has “heightened investor interest, but has also proven polarizing,” the analyst tells investors in a research note. The firm believes bullish sentiment is focused on selling AmeriGas to unlock value at UGI’s utility and midstream businesses, maintaining the dividend, and avoiding incremental leverage. The bear case assumes difficulty finding a buyer for AmeriGas at an attractive price, while headwinds at the subsidiary continue to pressure UGI into the heating season, says Mizuho. The firm cut estimates as a consequence of cutting capex intended for UGI’s renewables investments, which it says is a likely outcome of the review process.