Mizuho Upgrades UGI Corporation

Mizuho (NYSE:MFG) has reiterated its "outperform" rating on UGI Corporation (NYSE:UGI) and raised its price target to $33, citing potential value unlock through operational improvements and growth in its midstream and utilities businesses.

The brokerage noted that while UGI shares have rallied since the company’s fourth-quarter earnings call, there remains further room for upside. New CEO Bob Flexon’s focus on stabilizing AmeriGas and addressing the valuation gap has been well-received, according to Mizuho.

AmeriGas, which continues to trade at minimal equity value expectations, remains a key factor. Potential asset sales or operational stabilization could act as catalysts, the firm added.

Mizuho stated that the sum-of-the-parts valuation for UGI exceeds its current trading price, even under conservative assumptions.