Loading...
Loading...
In a report published Monday, Goldman Sachs analyst Steve Sherowski initiated coverage on
Plains GP Holdings LPPAGP with a Conviction List-Buy rating and $30.00 price target.
In the report, Goldman Sachs noted, “We initiate coverage of Plains GP Holdings (PAGP) with a CL-Buy rating and a $30 price target driven by our equally weighted dividend discount/relative value analysis. Our price target assumes PAGP trades at a 2.7% yield on 2014 cash flows (vs. 3.6% currently). PAGP is a levered investment in PAA – which we believe is the best positioned crude oil midstream MLP, with exposure to all of the ‘Big Three' crude oil shale basins. We forecast a robust project backlog at PAA to generate an 8%, 5-year distribution CAGR driving +20% cash flow growth at PAGP through its IDR ownership of PAA. PAGP is structured as a C-Corp but shares similar tax advantages as MLPs (it is unlikely to pay cash taxes for the foreseeable future).”
Plains GP Holdings LP closed on Friday at $22.89.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in