UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on Plains All American Pipeline
In a report published Wednesday, Wunderlich Securities reiterated its Buy rating on Plains All American Pipeline (NYSE: PAA), and raised its price target from $86.00 to $97.00.
Wunderlich noted, ”We are increasing our price target on Plains All American Pipeline, L.P. (PAA) to $97/unit from $86/unit as we have updated our distribution discount model. The partnership's strong fee-based business, coverage ratios, and inventory of growth projects argues for a lower required rate of return, which results in our higher price target. Plains reported 2Q12 EBITDA of $522 million and DCF of $390 million, which were largely in line with our estimates. In addition, the partnership announced updated 2012 guidance, which continues to trend well above the 2011 actual results. Plains has been a quality investment vehicle for investors in the past and we believe it will continue to be so going forward.”
Plains All American Pipeline closed on Tuesday at $86.45.
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