Plains GP Holdings LP Now Covered by Analysts at Wunderlich (PAGP)
Stock analysts at Wunderlich assumed coverage on shares of Plains GP Holdings LP (NASDAQ:PAGP) in a report issued on Monday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $29.00 price target on the stock. Wunderlich’s target price indicates a potential upside of 14.85% from the stock’s previous close.
The analysts wrote, “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.”
A number of other firms have also recently commented on PAGP. Analysts at Citigroup Inc. initiated coverage on shares of Plains GP Holdings LP in a research note to investors on Wednesday, December 18th. They set a “buy” rating and a $26.00 price target on the stock. Separately, analysts at Oppenheimer initiated coverage on shares of Plains GP Holdings LP in a research note to investors on Thursday, December 5th. They set an “outperform” rating and a $30.00 price target on the stock. Finally, analysts at Stephens initiated coverage on shares of Plains GP Holdings LP in a research note to investors on Monday, November 25th. They set an “overweight” rating and a $27.00 price target on the stock. Three research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company’s stock. Plains GP Holdings LP currently has an average rating of “Buy” and a consensus target price of $26.69.
Plains GP Holdings LP (NASDAQ:PAGP) traded up 2.10% during mid-day trading on Monday, hitting $25.78. The stock had a trading volume of 173,155 shares. Plains GP Holdings LP has a 52-week low of $21.50 and a 52-week high of $25.38. The stock has a 50-day moving average of $23.48 and a 200-day moving average of $23.13. The company has a market cap of $3.413 billion and a price-to-earnings ratio of 841.67.
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