NEW YORK (TheStreet) -- Shares of Genesis Energy, L.P. (GEL) are flat in pre-market trading Monday, as the oil and gas company had its rating raised to "outperform" from "neutral"' by analysts at Robert W. Baird this morning.
The firm maintained its price target of $57 on the shares.
R.W. Baird analysts cited the Houston, TX-based company's recent share weakness and good distribution growth for its raise in rating.
Genesis Energy is a limited partnership focused on the midstream segment of the oil and gas industry in the Gulf Coast region, with a portfolio of customers, operations and assets that include pipelines, refinery-related plants, storage tanks and terminals, barges and trucks.
Shares of Genesis Energy closed at $49.51 on Monday.
Separately, TheStreet Ratings team rates GENESIS ENERGY -LP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENESIS ENERGY -LP (GEL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 57.6% when compared to the same quarter one year prior, rising from $18.48 million to $29.11 million.
- GENESIS ENERGY -LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENESIS ENERGY -LP reported lower earnings of $1.00 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($1.46 versus $1.00).
- GEL, with its decline in revenue, slightly underperformed the industry average of 1.9%. Since the same quarter one year prior, revenues fell by 11.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for GENESIS ENERGY -LP is currently extremely low, coming in at 5.09%. Regardless of GEL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.01% trails the industry average.
- GEL has underperformed the S&P 500 Index, declining 8.78% from its price level of one year ago. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- You can view the full analysis from the report here: GEL Ratings Report