The firm said it lowered its rating on the retail propane distributor as it believes the stock is fully valued, and the company is in a long term structural decline.
Although Credit Suisse downgraded the company's rating, it increased its price target on AmeriGas stock by $1, to $45.
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"Our target price moves to $45 as we roll our model forward and slightly increase our distribution estimate. At $45, AmeriGas represents around a 6% total return, which is below the 26% median return for our coverage universe, justifying our downgrade," the firm said.
Shares of AmeriGas are lower by 0.83 to $45.25 in pre-market trading today.
Separately, TheStreet Ratings team rates AMERIGAS PARTNERS -LP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERIGAS PARTNERS -LP (APU) a BUY. This is driven by several positive factors, 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 revenue growth, growth in earnings per share, expanding profit margins, increase in net income and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."