UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Plains All American Pipeline

In a report published Monday, Citigroup reiterated its Buy rating on Plains All American Pipeline LP

, and raised its price target from $89.50 to $97.00. Citigroup noted, “We are raising our TP to $97.00 from $89.50 based on our view that PAA will continue to deliver strong results and growing distributions to unitholders. The partnership has a competitive advantage through strategically-located crude oil pipeline and storage assets that allows it to capitalize on the supply and demand imbalances that regularly occur in the U.S. and Canadian crude oil markets. Our new TP is based on partnership increasing distributions by 8.5% to an annualized rate of $4.62/unit over the next 12 months. We expect units to trade with a lower-than-average yield of 4.75% (5.00% previously) based the partnership's above average growth rate and unique asset base that is leveraged to strong crude fundamentals in North America.” Plains All American Pipeline LP closed on Friday at $86.19.