Robert Kad, an analyst from Morgan Stanley, maintained the Hold rating on Plains All American. The associated price target remains the same with $22.00.
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Robert Kad has given his Hold rating due to a combination of factors influencing Plains All American’s financial outlook. The company’s second-quarter results were largely in line with expectations, with crude oil EBITDA showing slight growth due to increased pipeline tariff volumes and escalations, although these were partially offset by declining commodity prices. However, the natural gas liquids (NGL) segment experienced a decline in EBITDA, primarily due to reduced butane spread benefits, despite some offset from higher frac spreads.
Looking forward, Plains All American has reaffirmed its 2025 EBITDA guidance but expects to be at the lower end of the range. The company also revised its 2025 adjusted free cash flow downward, reflecting reduced contributions from acquisitions. Despite these challenges, Plains All American maintains a positive long-term outlook on crude oil, although it faces short-term volatility and recontracting at lower rates. The increased investment capital guidance, driven by expansion projects and weather-related delays, alongside a stable leverage ratio, further supports the Hold rating as the company navigates these mixed financial indicators.
In another report released on August 8, TR | OpenAI – 4o also downgraded the stock to a Hold with a $19.50 price target.