UGI - Why UGI Could Double If Confidence Returns (Rating Upgrade)

2024-04-20 09:02:48 ET

Summary

• UGI Corporation is potentially undervalued and offers a high dividend yield of 6%.
• Mizuho upgraded UGI's price target while maintaining a neutral rating, citing potential for lower earnings but strong performance in the first quarter.
• UGI's diverse business portfolio, including regulated utilities and midstream operations, provides stability and earnings potential, but the company faces uncertain growth and market volatility.

Introduction

Over the past few weeks, I noticed an increasing number of my readers bringing up the UGI Corporation ( UGI ) , as a potentially undervalued high-yield play.

After all, this year, I have increased my emphasis on high-yield stocks, noting the attractive relative valuation of value stocks compared to growth stocks (see the chart below)....

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