Goldman Sachs Reiterates Sell Rating on Plains GP Holdings, L.P (PAGP)

Goldman Sachs analyst John Mackay reiterated a Sell rating and $17.00 price target on Plains GP Holdings, L.P (NASDAQ: PAGP)

The analyst comments "Ahead of 3Q24 earnings, we refresh our estimates for Plains All American (PAA, Sell and PAGP, Sell) and offer our views on the stock. Key focus this earnings season will be: 1) Midland vs. Delaware activity given underlying gas infrastructure constraints; 2) Permian growth vs. expectations and views on efficiencies from here, and 3) magnitude of bolt-on opportunities. For 3Q24 EBITDA, we expect $665m, in line with our prior estimate (an increase in Crude and Other offset by a slight decrease in NGL) – just above consensus of $653m. Sequential drivers include fewer crude marketing gains from 2Q24, less upside from iso-to-normal butane spreads in NGLs, and deferred operating costs into 2H24, offset by stronger Permian growth, particularly for long-haul. For FY24, we estimate EBITDA of $2,780m vs. consensus of $2,766m. On valuation, we maintain our PT of $17 for PAA and PAGP and remain Sell-rated."

For an analyst ratings summary and ratings history on Plains GP Holdings, L.P click here. For more ratings news on Plains GP Holdings, L.P click here.

Shares of Plains GP Holdings, L.P closed at $18.78 yesterday.

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