Zacks Investment Research downgraded shares of Ferrellgas Partners L.P. (FGP) from OUTPERFORM to NEUTRAL on September 14, 2012, with a target price of $20.00.
We have downgraded our recommendation on Ferrellgas Partners L.P. to Neutral from Outperform primarily due to a highly competitive propane distribution business environment, seasonal variance in the demand for propane, reliance on few propane suppliers and higher degree of competition from other energy sources. In addition, increase in motor fuel prices is expected to negatively affect the partnership's financial performance in terms of higher propane delivery costs. These negatives may be to some extent mitigated by the partnership's strong acquisition strategy, lower cost of operation, debt minimization efforts and financial flexibility.
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