- NGL Energy Partners (NYSE:NGL) is maintained with a Buy rating and $40 price target at Janney after the company raised its guidance for adjusted EBITDA in FY 2015 and 2016.
- NGL now expects adjusted EBITDA to be above $425M in the year ended March 31, up from its previous outlook for $410M-$425M, and it also increased its adjusted EBITDA guidance for FY 2016 to $500M or greater, vs. prior guidance of $485M-$500M.
- Janney bases its call on the upside guidance and optimism about NGL's water services and crude logistics businesses; the firm believes NGL’s distribution growth will average ~10% annually for the next three years vs. consensus expectation of 7%, and says the company’s guidance raise is supportive of such a view.