Market Overview

UPDATE: Wunderlich Initiates Plains All American Pipeline on Visible Near Term Growth

Share:
Related PAA
Benzinga's Top Upgrades, Downgrades For September 24, 2018
Plains All American's Partial Divesture Of BridgeTex Turns BofA Bullish

In a report published Monday, Wunderlich Securities analyst Abhishek Sinha initiated coverage on Plains All American Pipeline, L.P. (NYSE: PAA) with a Buy rating and a $60.00 price target.

The report summary read, “We believe the units offer an attractive balance of current yield and visible near-term distribution growth, while the asset base is well positioned for long-term growth as these assets are located in a few of the most prolific basins of the US. PAA has ~$7.0billion of organic projects to propel mostly fee-based cash flows. Our $60 pricetarget and 12-month distribution forecast implies a total return potential of ~30%and results in a 4.3% target yield. Further, assuming our 10-year distribution forecast and terminal value estimate, the stock's current price implies a relatively attractive market-based discount rate or annual IRR of 10.0%.”

Some key points from the report noted: -”Visible organic growth drives the momentum.” -”Fee-based model mitigates cash flow variability.”

Plains All American Pipeline closed on Friday at $50.57.

Latest Ratings for PAA

DateFirmActionFromTo
Dec 2018JefferiesUpgradesHoldBuy
Nov 2018MizuhoInitiates Coverage OnBuy
Nov 2018CitigroupMaintainsBuyBuy

View More Analyst Ratings for PAA
View the Latest Analyst Ratings

Posted-In: Abhishek Sinha WunderlichAnalyst Color Initiation Analyst Ratings

 

Related Articles (PAA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FNDUBSUpgrades37.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

UPDATE: Credit Suisse Upgrades Five Below on Heightened Investor Appetite

Benzinga's Top Downgrades