PetroLogistics shares benefit from Citi upgrade
NEW YORK (AP) — Shares of propylene producer PetroLogistics LP rose on Tuesday after a Citi analyst upgraded the company's stock because price changes suggest that pricing may be moving in the right direction.
THE SPARK: Citi analyst P.J. Juvekar upgraded PetroLogistics to "Buy" from "Neutral."
THE BIG PICTURE: Propylene prices rose in January, mainly driven by a PetroLogistics outage. Its plant has now restarted, but industry propylene inventories are still 38 percent below last year, Juvekar wrote. Meanwhile, propane prices have fallen after a warmer-than-usual winter. That raises the potential for refiners to begin using more propane vs. ethane — which would be good for PetroLogistics.
SHARE ACTION: Up 40 cents, or 2.8 percent, to $14.97 in afternoon trading. Over the past 52 weeks they've traded between $10 and $17.06.