UBS Raises Price Target on Plains All American Pipeline (PAA) to $34; Reiterates Buy

November 21, 2016 9:29 AM EST
Get Alerts PAA Hot Sheet
Price: $32.31 +1.70%

Rating Summary:
    12 Buy, 18 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
Trade PAA Now!
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.

UBS reiterated a Buy rating on Plains All American Pipeline (NYSE: PAA), and raised the price target to $34.00 (from $33.00). UBS estimates roughly $195MM of earnings uplift in PAA's transportation segment, using our Basin model and posted tariffs. UBS raised 2017/18 adjusted EBITDA estimates to $2.39/$2.64 from $2.36/$2.58B on expectations of additional Permian volumes and a widening of S&L margins.

Analyst Shneur Gershuni commented, "We continue to like PAA for its Permian exposure and think it will be one of the biggest beneficiaries from the bullish prod forecasts in the region. Notably on its CC, mgmnt noted it expects a 300Mbbl increase in the Permian next year, vs. our current basin model which calls for a 192Mbbl increase and UBS E&P Teams est of ~ 400MBbl increase. We believe that PAA's pipeline network and interconnectivity ex. gathering to refinery puts it in a good position to capture additional volumes. Further on its call mgmnt noted that both BridgeTex (50/50 JV) and Cactus can be expanded, and based on our E&Ps teams production expectations both will be needed to occur by '18."

For an analyst ratings summary and ratings history on Plains All American click here. For more ratings news on Plains All American click here.

Shares of Plains All American closed at $31.21 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Related Entities

UBS, Earnings

Add Your Comment