Wunderlich Securities analyst Abhishek Sinha initiated coverage of Plains GP Holdings, L.P. PAGP with a Buy rating and a $29.00 price target.
The report summary read, “In our view, PAGP offers strong return prospects underpinned by a fee-based crude oil infrastructure business with high growth potential and tax efficient C-Corp structure. PAGP owns 21% interest in Plains All American's (PAA-$50.57, Buy) general partnership and is a pure play general partner with no PAA limited partner (LP) units or physical assets. PAGP will also have a tax shield for 3-4 years as a result of a tax basis step-up during its IPO. The company is a levered play on the underlying MLP, PAA, which is one of the largest midstream MLPs leveraged to crude oil operations. For a detailed analysis on PAA, please refer to our recent initiating coverage report.”
Some key points from the summary stated:
-”Best of both worlds: C-Corp structure with a tax shield.”
-”Attractive total return value proposition.”
-”Significant potential for cash distribution growth.”
-”Strategic leverage to the underlying MLP.”
-”Valuation and price target justification.”
Plains GP Holding closed Friday at $25.25.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.