Although Citigroup (NYSE:C) increased its price target on Boardwalk Pipeline (NYSE:BWP) from $31 to $33, they remain concerned over the natural gas exposure of the company, along with transport.
Citi said, "We remain cautious on BWP's transport and nat gas storage segments. A low nat gas price environment and relatively depressed forward curve do not bode well for regional basis differentials or storage margins. BWP generates 13% of cash flow from storage and 10% of its transport income is interruptible."
Citi maintains a "Hold" on the company.
Boardwalk closed Monday at $33.30, losing $0.32, or 0.95 percent. Trading volume was over three times the 3-month average.
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