Wells downgrades UGI on balanced risk/reward after Q1 update

Wells Fargo downgraded UGI Corporation to Equal Weight from Overweight with a price target of $28, up from $27. With momentum from the strategic review and “constructive” fiscal Q1 update, the risk/reward on the shares is more balanced at these levels, the analyst tells investors in a research note. The firm says that with the shares now trading north of $25, the upside is more limited. In addition, Wells is not confident that UGI’s strategic review will result in a sale of AmeriGas. While the fiscal Q1 update was generally constructive, AmeriGas was an exception as customer attrition was greater than expected, it says.