Plains All American price target lowered to $18 from $19 at Scotiabank

Scotiabank lowered the firm’s price target on Plains All American (PAA) to $18 from $19 and keeps an Outperform rating on the shares. In the U.S. Midstream sector, Q2 earnings season saw a “mixed bag of prints,” the analyst tells investors. The firm believes that even if development activity slowed in basin-level production growth/outlook, gas-levered names stand to benefit due to the properties of a shale well and hydrocarbon streams. Scotiabank believes the more pressing issue is whether this benefit can fully offset “capex creep” and preserve cash flows.