MLP Rating Updates for the Week Ended September 1

Kurt Gallon - Author

Nov. 20 2020, Updated 5:19 p.m. ET

Plains All American Pipeline

It’s raining upgrades for Plains All American Pipeline (PAA) and its GP (general partner), Plains GP Holdings (PAGP), following a huge correction in the previous weeks. Last week, BMO Capital Markets raised both PAA and PAGP to “outperform,” which is equivalent to a “buy.” Raymond James upgraded them to “strong buy” from “outperform.” However, Stifel cut PAA’s target price to $21 from $26 last week. In the previous week, Jefferies upgraded PAA to a “buy”.

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Now, 50.0% of analysts rate PAA a “buy,” and the remaining 50.0% rate it a “hold” as of September 1, 2017. At the same time, PAGP has a “buy” rating from 54.5% of analysts, while the remaining 45.5% rate it a “hold.” PAA’s and PAGP’s target prices of $24.30 and $25.60, respectively, imply ~11.0% and ~13.0% returns, respectively, from their current price levels.

Dominion Midstream Partners

Morgan Stanley upgraded Dominion Midstream Partners (DM) to “overweight” (“buy”) from “equal weight” (“hold”) last week. DM’s upgrade could be attributed to its attractive valuation given its strong distribution growth and low commodity price exposure. Following the rating upgrade, the partnership has a “buy” rating from 78.6% of analysts surveyed by Reuters, while the remaining 21.4% rate it a “hold.” DM is currently trading close to the lower range ($28) of its analyst price target. Its average target price of $33.60 implies an ~18.0% return from its current price level.

Archrock Partners

Archrock Partners (APLP), the MLP involved in providing natural gas compression services, was downgraded by Stifel and SunTrust Robinson Humphrey to a “hold” from a “buy.” APLP was downgraded following its announcement to merge into Zenith Energy. Now, 100.0% of analysts rate APLP a “hold.” APLP’s average target price of $18.50 implies a ~37.0% return from its current price level.

For more such coverage on midstream companies, check out our Master Limited Partnerships page.


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