Skip to main content

Market Overview

UPDATE: Morgan Stanley Resumes Coverage on Plains All American Pipeline LP as Valuation Reflects Strong Asset Positions


In a report published Monday, Morgan Stanley analyst Stephen J. Maresca resumed coverage on Plains All American Pipeline LP (NYSE: PAA) with an Equal-Weight rating and $58.00 price target.

In the report, Morgan Stanley noted, “PAA is a blue chip, large-cap MLP with multiple growth platforms. We expect organic projects (Permian, Eagle Ford, Canada, Mid-Continent) to remain the primary driver of growth (PAA is guiding to organic investment of $1.600-1.725b in 2013e and $1.3-1.5b in 2014e), with strategic third party acquisitions likely used to augment growth were opportunities present themselves. We estimate distribution growth of 10.4% in 2014, 9.1% in 2015, and 6.6% in 2016 at PAA. Given a premier management team, diverse, strategically positioned assets, strong balance sheet flexibility, and solid distribution coverage, we see relatively low execution risk to this outlook. PAA trades at a yield of 4.5% and 2014e P/DCF of 18.3x vs. large-cap diversified peers at 5.2% and 16.0x, respectively. Our $58 price target implies a twelve-month total return of 18%.”

Plains All American Pipeline LP closed on Friday at $51.95.

Latest Ratings for PAA

Mar 2021Morgan StanleyDowngradesOverweightEqual-Weight
Mar 2021Wolfe ResearchDowngradesOutperformPeer Perform
Feb 2021Morgan StanleyMaintainsOverweight

View More Analyst Ratings for PAA
View the Latest Analyst Ratings


Related Articles (PAA)

View Comments and Join the Discussion!

Posted-In: Morgan Stanley Stephen J. MarescaAnalyst Color Initiation Analyst Ratings

Latest Ratings

EACredit SuisseMaintains167.0
HOMECompass PointDowngrades
MGACredit SuisseMaintains120.0
BYNDCanaccord GenuityMaintains125.0
CICredit SuisseMaintains300.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at