UPDATE: Jefferies Initiates Coverage on Plains All American Pipeline LP with Hold Rating, $55 PT on Positive Factors, Muted Outlook

In a report published Wednesday, Jefferies analyst Christopher Sighinolfi initiated coverage on

with a Hold rating and $55.00 price target. In the report, Jefferies noted, “PAA offers a premier crude midstream footprint, proven executive team, and potential upside from ongoing S&L optimizations. While wide crude oil basis differentials bolstered 2012-1H13 operational & financial results, we expect a return to more 'baseline' S&L segment results, & forecast a decline in coverage from the TTM avg. of ~1.6x to ~1.1x in 2017. Shares are up ~15% YTD & present a balanced risk-reward profile; hence, we are initiating with a Hold.” Plains All American Pipeline LP closed on Tuesday at $50.56.