Dec. 8 Wall Street Transcript Report on Oil & Gas Production and Distribution included a recommendation from Ethan Bellamy, Senior VP of Natural Resources, of Wunderlich: "In my coverage, my favorite natural gas-oriented play is Inergy LP, ticker NRGY...."
Now today Wunderlich comes out with a downgrade of NRGY from Buy to Hold.
Gee, has so much changed in a few days for NRGY or what????
Not the first time and certainly won't be the last. My favorite (from a different group) was a downgrade turned to an upgrade a day later after earnings were better than expected at FCFS several years ago. It's amazing how easily they can influence the market considering how schizophrenic their analysis is. If a stock is moving more than normal on any particular day chances are it has something to do with an analyst rather than something substantive from the company. I still think that most analysis of NRGY is way off. This might be a bit overvalued right now compared to their peers in propane or pipes, but they are missing the long term undervaluation and mostly missing the growth of this company into a diversified LP with lots of areas to develop.
Two things. Wells Fargo had an MLP conference last week and they said that the propane MLPs reported that margins were high and holding up well. Also mentioned that NRGY's move into midstream and storage would add growth. Numerous stories out about yield plays. Then again, this has had a nice run as has the gp, NRGP, which is up 8 points in the last couple of weeks.