$SGU

Star Group, L.P. (SGU) is rated Hold despite a 33% upside due to the ongoing decline of the heating-oil sector and unit illiquidity. The company offers a 6.3% forward yield, 7% annual distribution growth, and aggressive buybacks, but faces long-term challenges from shrinking demand and regulatory shifts towards heat pumps. While financially sound with low leverage and strong ROE, investors must consider the tax complexity of MLPs and potential exit risks associated with its niche market.