UPDATE: Stifel Nicolaus Lowers PT on Plains All-American Pipeline Following Expected Supply Decline

In a report published Wednesday, Stifel Nicolaus analyst Selman Akyol reiterated a Buy rating on Plains All-American Pipeline PAA, but lowered the price target from $63.00 to $60.00.

In the report, Stifel Nicolaus noted, “Plains All American is the premier transportation, storage, terminalling and marketing of crude oil, refined products and NGL's. PAA's Supply and Logistics declined sharply this quarter as promised by Management but came in above our expectations and the company's. The Transportation segment showed a decline as well due to operational issues which impacted results by $25 million. Facilities was the lone segment to show year over year growth which improved by 26%. While not the strong year over year results we have grown accustomed to from PAA we believe this is mostly attributable to its Supply and Logistics segment. We continue view this as a core holding in a MLP portfolio and continue with our Buy rating however we are lowering our target price to $60 from $63.”

Plains All-American Pipeline closed on Tuesday at $54.53.