Zacks Investment Research downgraded shares of Plains All American Pipeline L.P. (PAA) from OUTPERFORM to NEUTRAL on September 13, 2012, with a target price of $92.00.
We have downgraded our recommendation on Plains All American Pipeline L.P. to Neutral from Outperform primarily due to decline in hydrocarbon volumes, stringent regulations and higher expenses related to offshore drilling, uncertainty in global capital and credit markets, and commodity price volatility. There are several positive factors like crude oil pipeline developments and storage asset-portfolio in prospective oil producing areas, steady investments in organic growth projects, and quarterly distribution increase at regular intervals, which might mitigate those negatives in the future. In second-quarter 2012, the partnership surpassed our top- and bottom-line projections due to favorable growth contributed by each of its segments.
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