Wells Fargo Upgrading AmeriGas Partners

Wells Fargo Securities is out with a research report on AmeriGas Partners, L.P. APU and is upgrading shares to Market Perform and it has a $42-$44 price target. In a note to clients, Wells Fargo Securities writes, "We are raising our rating on APU to Market Perform from Underperform based on valuation. The price of APU's units has fallen by 18% since hitting its 52-week high in early February compared to a decline of 2% for the Wells Fargo Securities MLP Index and less than 1% for the S&P 500 Index. However, we continue to believe that APU's large market share in a slow-to-declining mature propane industry requires investors to be more sensitive to valuations. APU reported FQ3 2011 results that were relatively in line with our expectations as propane gallons sold came in above our estimates offset by higher-than-anticipated maintenance capex. Our FY2011 and FY2012 DCF per unit estimates are $3.89 and $3.90, respectively, down slightly from our previous estimates of $3.91 and $3.93. Our valuation range for APU remains unchanged at $42-44." Shares of APU closed at $42.45 yesterday.