Plains GP Holdings ( (PAGP) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Plains GP Holdings’ stock is on the rise following its announcement to sell its Canadian NGL business to Keyera Corp. for C$5.15 billion. This strategic move aims to sharpen the company’s focus on crude oil, enhance financial flexibility, and boost free cash flow, while minimizing exposure to volatile commodity prices. Analysts have reacted favorably, with Mizuho increasing its price target to $22 due to potential strategic acquisitions and a streamlined operational focus. Similarly, JPMorgan has raised its target to $20, highlighting the financial optionality from the sale. Despite the positive sentiment, analysts remain cautiously optimistic given the company’s high leverage and valuation concerns amid market volatility.
More about Plains GP Holdings
YTD Price Performance: 4.93%
Average Trading Volume: 1,753,890
Technical Sentiment Signal: Buy
Current Market Cap: $14.37B
For further insights into PAGP stock on TipRanks’ Stock Analysis page.
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