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Research Alert: CFRA Keeps Hold Opinion On Lp Units Of Plains All American
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Research Alert: CFRA Keeps Hold Opinion On Lp Units Of Plains All American
Nov 9, 2025 8:37 AM

11:00 AM EST, 11/09/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $18, cut $1, is based on our relative value and DCF models. We apply a 9.0x multiple of EV to projected '26 EBITDA, in line with PAA's historical forward average, yielding $17 per share. Our DCF model, using free cash flow growth of 3.5% per year for 10 years and 2% thereafter, at a WACC of 6.9%, yields $19 per share. We lift our '25 earnings per unit est. by $0.19 to $1.69, and '26's by $0.18 to $1.70. PAA is aligned with the processing and transportation of North American liquids (increasingly, crude oil more than NGLs), and we think there are some question marks on both fronts. We are concerned about crude oil production finally rolling over, given a somewhat tepid spending outlook by E&Ps. On the NGL front, the risk in our view is with China, as trade tensions could weigh on demand for U.S. NGLs, which are used as feedstock in Chinese chemical manufacturing. Overall, we think 2025 and 2026 are decent years, but the valuation is close to full.

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