Ferrellgas Warrants a Hold
A Hold recommendation has recently been issued to oil company Ferrellgas Partners, L.P. (FGP) by Zacks senior energy industry analyst Sheraz A. Mian. Here's what his latest update had to say about it:
'Ferrellgas' fiscal fourth-quarter results came in modestly weaker than expected. Despite a 3% drop in volumes during the quarter, gross profit increased approximately 2%, driven by an 84 basis-point increase in gross margin.
'Earnings per common unit for the full year increased approximately 47% year over year, primarily reflecting the impact of contributions from the partnership's revamped retail operating platform. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter and for the full year were up 21% and 9.8% year-over-year, respectively.
'We are keeping our fiscal 2008 earning per unit (EPU) estimate unchanged at this stage and will introduce our fiscal 2009 EPU estimate soon. We recommend a Hold for the shares of the company with a six-month target price of $22.00.'
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