Plains All American Pipeline "sector perform," target price raised

09/01/09 - RBC Capital Markets

NEW YORK, September 1 (newratings.com) - Analysts at RBC Capital Markets maintain their "sector perform" rating on Plains All American Pipeline (PAA). The target price has been raised from $48 to $51.

In a research note published this morning, the analysts mention that the company has announced that it will buy back 50% of the ownership in PAA Natural Gas from Vulcan Capital. The deal would be accretive to Plains All American Pipeline, the analysts say. The DCF estimates for 2009 and 2010 have been raised from $3.97 to $4.07 and from $3.96 to $4.16, respectively.