Zacks Investment Research upgraded shares of Plains All American Pipeline L.P. (PAA) from NEUTRAL to OUTPERFORM on November 29, 2012, with a target price of $56.00.
We have upgraded our recommendation on Plains All American Pipeline L.P. to Outperform from Neutral primarily owing to its strong crude oil pipelines and storage asset-portfolio in prospective oil producing areas, and increase in quarterly distribution at regular intervals. In addition, Plains intends to deploy over $1 billion in its numerous organic growth projects through 2013. We believe these initiatives will further enable the partnership to strengthen its existing operations to serve major U.S. refineries and distribution markets. However, we are skeptical about commodity price fluctuations, and delay in drilling and development activities for strict guidelines and higher costs. In third-quarter 2012, the partnership's top- and bottom-line surpassed our expectation due to benefits from acquisitions, higher pipeline tariffs and volumes, and completion of several organic growth projects.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Plains All American Pipeline L.P. (PAA),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment