Plains All American Pipeline, L.P. (PAA) Rating Lowered to Sell at Zacks Investment Research

Plains All American Pipeline, L.P. (NYSE:PAA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday, October 18th.

According to Zacks, “Plains All American’s unit underperformed the return from the industry in the last one month. The partnership is subject to several regulations. Delay in completion of ongoing projects could increase the partnership’s operating costs. In addition, intense competition in the midstream space continues to pose a threat. Moreover, Plains All American's NGL business has been delivering weak  performance lately. This in turn forced the partnership to lower its EBITDA guidance for 2017. However, the partnership is modifying the way it manages inventory and implementing contractual provisions that will reduce earnings volatility.”

A number of other equities research analysts have also commented on the company. UBS AG raised Plains All American Pipeline, L.P. from an “outperform” rating to a “strong-buy” rating in a research report on Monday, August 28th. Raymond James Financial, Inc. raised Plains All American Pipeline, L.P. from an “outperform” rating to a “buy” rating and set a $24.00 price target on the stock in a research report on Monday, August 28th. Mizuho raised Plains All American Pipeline, L.P. from a “neutral” rating to a “buy” rating and set a $30.00 price target on the stock in a research report on Monday, July 10th. Jefferies Group LLC reaffirmed a “hold” rating and set a $28.00 price target (up previously from $27.00) on shares of Plains All American Pipeline, L.P. in a research report on Friday, July 21st. Finally, Bank of America Corporation dropped their price target on Plains All American Pipeline, L.P. from $26.00 to $22.00 and set a “neutral” rating on the stock in a research report on Monday, August 28th. Two analysts have rated the stock with a sell rating, fourteen have given a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $27.60.

Shares of Plains All American Pipeline, L.P. (NYSE:PAA) traded up 2.17% during midday trading on Wednesday, hitting $19.78. 764,165 shares of the company’s stock were exchanged. The stock has a market cap of $14.33 billion, a PE ratio of 15.26 and a beta of 0.98. Plains All American Pipeline, L.P. has a 1-year low of $18.77 and a 1-year high of $33.95. The stock’s 50 day moving average is $21.32 and its 200-day moving average is $24.61.

Plains All American Pipeline, L.P. (NYSE:PAA) last issued its earnings results on Monday, August 7th. The pipeline company reported $0.21 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.26 by ($0.05). Plains All American Pipeline, L.P. had a return on equity of 10.14% and a net margin of 4.42%. The company had revenue of $6.08 billion for the quarter, compared to the consensus estimate of $5.50 billion. During the same quarter last year, the business posted ($0.12) EPS. Plains All American Pipeline, L.P.’s quarterly revenue was up 22.8% on a year-over-year basis. Analysts predict that Plains All American Pipeline, L.P. will post $1.45 earnings per share for the current fiscal year.

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A number of institutional investors and hedge funds have recently added to or reduced their stakes in PAA. Waldron LP bought a new stake in Plains All American Pipeline, L.P. in the 1st quarter valued at $1,380,000. Bank of New York Mellon Corp raised its holdings in Plains All American Pipeline, L.P. by 47.4% in the 1st quarter. Bank of New York Mellon Corp now owns 468,916 shares of the pipeline company’s stock valued at $14,822,000 after acquiring an additional 150,752 shares in the last quarter. Comerica Bank raised its holdings in Plains All American Pipeline, L.P. by 0.7% in the 1st quarter. Comerica Bank now owns 8,130 shares of the pipeline company’s stock valued at $239,000 after acquiring an additional 57 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in Plains All American Pipeline, L.P. by 8.1% in the 1st quarter. Ameriprise Financial Inc. now owns 90,975 shares of the pipeline company’s stock valued at $2,876,000 after acquiring an additional 6,823 shares in the last quarter. Finally, Alliancebernstein L.P. raised its holdings in Plains All American Pipeline, L.P. by 40.5% in the 1st quarter. Alliancebernstein L.P. now owns 91,621 shares of the pipeline company’s stock valued at $2,896,000 after acquiring an additional 26,410 shares in the last quarter. Institutional investors and hedge funds own 41.69% of the company’s stock.

About Plains All American Pipeline, L.P.

Plains All American Pipeline, L.P. owns and operates midstream energy infrastructure and provide logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The Company operates through three segments: Transportation, Facilities, and Supply and Logistics. The Company’s transportation segment operations consist of activities associated with transporting crude oil and NGL on pipelines, gathering systems, trucks and barges.

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