Actionable Stock Market Trading Newswire. Built for Traders, by Traders.
All news is property of their respective owners.

UGI Needs To Rebuild Cash Generating Subsidiaries, Says Analyst

Mizuho Securities analyst Gabriel Moreen initiated coverage on UGI Corp (NYSE:UGI) at Neutral with a price target of $38. The analyst sees…
byLekha Gupta
April 26, 2023
1 minute read
Total
0
Shares
0
0
0
0
0
0
  • Mizuho Securities analyst Gabriel Moreen initiated coverage on UGI Corp (NYSE:UGI) at Neutral with a price target of $38.
  • The analyst sees favorable development at UGI’s renewables projects as a growth driver. 
  • The analyst expects UGI to witness weakness in its Global LPG businesses (AmeriGas and UGI International) in the medium-term, with expected softer margins (~50% vs upper-50% to low-60% recent range).
  • The analyst believes UGI will incur higher capital expenditure in order to achieve rebuilding of cash flow generating subsidiaries. 
  • Moreen also expects acquisition spending of $100 million annually to tackle customer attrition and lower volumes. 
  • The analyst is expecting -3.5% CAGR earnings decline from FY22-FY26 and projects AmeriGas business to achieve an 8% CAGR earnings target by FY26 (Mizuho estimates of 8.5% CAGR).
  • The analyst expects FCF of $0.1 billion vs. UGI’s expectation of $(0.4) billion – $0.2 billion for FY23-FY26. 
  • Price Action: UGI shares are trading lower by 2.04% at $33.21 on the last check Wednesday.
 
Total
0
Shares
Share 0
Tweet 0
Share 0
Share 0
Share 0
Share 0
Related Posts
Read More

Key Marijuana Executive Changes As Year End Approaches: Meet Leadership Team Of New Hemp Organization & More

By Jelena Martinovic
December 22, 5:00 PM
Federation Of International Hemp Organizations Names Leadership Team The Federation of International Hemp Organizations has appointed Fredéric Vallier, who served as secretary general of the Council of European Municipalities and Regions for 12 years, as its first-ever director general, reported Hemp Today.

BUD