Plains All Amer Now Covered by Analysts at Wunderlich (PAA)
Investment analysts at Wunderlich started coverage on shares of Plains All Amer (NYSE:PAA) in a note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $60.00 price target on the stock. Wunderlich’s target price suggests a potential upside of 18.65% from the company’s current price.
The analysts wrote, “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 Amer (NYSE:PAA) opened at 50.57 on Monday. Plains All Amer has a 1-year low of $44.15 and a 1-year high of $59.52. The stock has a 50-day moving average of $50. and a 200-day moving average of $52.67. The company has a market cap of $17.343 billion and a P/E ratio of 17.36.
Plains All Amer (NYSE:PAA) last released its earnings data on Monday, November 4th. The company reported $0.53 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.50 by $0.03. The company had revenue of $10.70 billion for the quarter, compared to the consensus estimate of $9.57 billion. During the same quarter last year, the company posted $0.73 earnings per share. Plains All Amer’s revenue was up 14.4% compared to the same quarter last year. Analysts expect that Plains All Amer will post $3.06 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Citigroup Inc. initiated coverage on shares of Plains All Amer in a research note to investors on Wednesday, December 18th. They set a “buy” rating on the stock. Separately, analysts at Deutsche Bank downgraded shares of Plains All Amer from a “buy” rating to a “hold” rating in a research note to investors on Tuesday, December 17th. They now have a $55.00 price target on the stock, down previously from $66.00. Finally, analysts at Clarkson Capital upgraded shares of Plains All Amer from a “market perform” rating to an “outperform” rating in a research note to investors on Monday, November 25th. Five analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. Plains All Amer currently has a consensus rating of “Buy” and an average target price of $59.52.
Plains All American Pipeline, L.P. (NYSE:PAA) is engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids (NGL).
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