Plains All Amer (NYSE: PAA) was upgraded by research analysts at Deutsche Bank from a “hold” rating to a “buy” rating in a report released on Monday, TheFlyOnTheWall.com reports.
The analysts wrote, “With this report we are upgrading PAA to Buy based upon its accelerating growth rates in distributable cash flow, its increasing component of fee based earnings, our projected distribution coverage ratio of 1.3x in 2013 and 1.5x in 2014 and an expected distribution growth rate of 9-10%. 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 (please see report dated January 10, 2013) 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. This is based on an increase of 9%E in distributions in 2013 over the current $2.16 rate and a target yield of 3.7%E, which is supported by the strong coverage ratio, the group and market comparables and the outlook for growth.”
Plains All Amer (NYSE: PAA) traded up 0.87% on Monday, hitting $56.9698. Plains All Amer has a 52-week low of $37.59 and a 52-week high of $57.17. The stock’s 50-day moving average is currently $54.42. The company has a market cap of $19.151 billion and a price-to-earnings ratio of 23.60.
Plains All Amer (NYSE: PAA) last announced its earnings results on Wednesday, February 6th. The company reported $0.69 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.75 by $0.06. The company had revenue of $9.44 billion for the quarter, compared to the consensus estimate of $158.00 billion. During the same quarter in the prior year, the company posted $1.65 earnings per share. The company’s quarterly revenue was up 6.2% on a year-over-year basis. Analysts expect that Plains All Amer will post $2.86 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Global Hunter Securities raised their price target on shares of Plains All Amer from $50.00 to $55.00 in a research note to investors on Tuesday, February 12th. Separately, analysts at Bank of America raised their price target on shares of Plains All Amer to $58.00 in a research note to investors on Monday, February 11th. Finally, analysts at RBC Capital raised their price target on shares of Plains All Amer from $54.00 to $57.00 in a research note to investors on Monday, February 11th. They now have an “outperform” rating on the stock.
Five research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. Plains All Amer currently has a consensus rating of “Buy” and an average price target of $69.53.
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).