Deutsche Bank analysts upgraded master limited partnership (MLP) Plains All American Pipeline, L.P. (PAA) on Monday, citing accelerating cash flow and increasing fee based earnings as reasons for the upgrade.
The analysts upgraded PAA from “Hold” to “Buy” with a price target of $66, up from the previous view of $52. This new valuation suggests a 17% upside to Thursday’s closing price of $56.48.
Deutsche Bank analyst Curt Launer notes, “PAA shows about $1.1 billion in growth projects this year, mostly moving to oil in the best shale basins. With our recent moves to increase valuations for oil-based infrastructure combined with the strong financials at PAA, we are raising our rating from Hold to Buy and increasing our target price to $66 from $52.”
Plains All American Pipeline shares were inactive during pre-market trading on Monday. The stock is up +24.85% year-to-date.
The Bottom Line
Shares of Plains All American Pipeline (PAA) have a dividend yield of 3.98% based on Thursday’s closing price of $56.48 and the company’s annualized dividend payout of $2.25 per share.
Plains All American Pipeline, L.P. (PAA) is recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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