Deutsche Bank Upgrades Plains GP Holdings, L.P (PAGP) to Buy

Deutsche Bank upgraded Plains GP Holdings, L.P (NYSE: PAGP) from Hold to Buy with a price target of $15.00 (from $13.00).

Analyst Kristina Kazarian said, "We upgrade PAGP to Buy (from Hold) with a $15 PT (from $13) against its CMP of $13 due to higher expected cash flows at PAA + assuming a slow premium from its c-corp currency (broader investor base). Our PT is based off a target yield (5.5% yield on our CY17 DPU estimate of $0.83) and a DDM (7% discount rate and 2.0% terminal growth rate, in-line with the industry avg.) – at a slight discount to PAA as PAGP will remain a c-corp tracking stock. Potential risks are the same as PAA."

For an analyst ratings summary and ratings history on Plains GP Holdings, L.P click here. For more ratings news on Plains GP Holdings, L.P click here.

Shares of Plains GP Holdings, L.P closed at $13.03 yesterday.

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