AG Edwards downgraded Williams Energy Partners L.P. (WEG ) to sell from hold.
Analyst Ronald Londe says investors appear to be discounting a favorable fundamental outlook but not taking fully into consideration developments within the terms of WEG partnership that could slow growth. He says with the next distribution increase, general partner incentive split will be 50%, which could cause investors to demand a higher current yield and impede relative performance. He notes with the fact that the partnership is larger and slow growth nature of its pipeline systems, overall growth could be more difficult to attain.
Londe also downgraded Amerigas Partners L.P. (APU ) and Suburban Propane Partners L.P. (SPH ) based on valuation.