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Jefferies: Not All MPLs In 'Stock Pickers' Bone Yard'

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Despite pressure on master limited partnerships in the energy sector, an analyst is unready to relegate the group to the "stock pickers' bone yard."

"There are some compelling opportunities," Jefferies' Christopher Sighinolfi said Friday.

Direct exposure in the sector to crashing oil and gas varies widely, Sighinolfi said, with a few actually benefiting from lower prices.

The analyst upgraded the affiliated partnerships Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP Holdings LP (NYSE: PAGP) to Buy, from Hold.

Sighinolfi cited the partnerships' recent credit upgrade and current valuation for the upgrades.

Among other "top picks:" Access Midstream Partners LP (NYSE: ACMP) along with its affiliates Williams Partners L.P. (NYSE: WPZ) and Williams Companies Inc (NYSE: WMB) soon set to merge.

Sighinolfi also likes Sunoco Logistics Partners L.P. (NYSE: SXL) and said the company has little direct exposure to falling commodities prices.

On the darker side, Sighinolfi warned that Targa Resources Partners LP's (NYSE: NGLS) distributions and dividends could be at risk after 2015 if commodity prices remain low.

Latest Ratings for PAA

DateFirmActionFromTo
Sep 2019Initiates Coverage OnSector Outperform
Jul 2019Initiates Coverage OnOverweight
Dec 2018UpgradesHoldBuy

View More Analyst Ratings for PAA
View the Latest Analyst Ratings

Posted-In: Christopher Sighinolfi JefferiesAnalyst Color Upgrades Reiteration Analyst Ratings

 

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StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
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