Plains GP Holdings, L.P. Receives “Hold” Recommendation from Nine Brokerages

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Plains ($NASDAQ:PAGP) GP Holdings, L.P. is a publicly traded master limited partnership (MLP) that provides transportation, storage, processing, and marketing services for crude oil, natural gas, and natural gas liquids. The company operates primarily in the United States and owns and operates a vast network of pipelines, terminals, and storage facilities. Recently, Plains GP Holdings, L.P. has received attention from nine different brokerages who have all given the company an overall “Hold” recommendation. This news comes amid a volatile market, where many investors are looking for safe and stable investment options. This rating is often given to companies that are seen as having a stable financial outlook and minimal risk, but without much potential for short-term gains.

However, their collective decision to give this rating suggests a consensus among industry professionals that the company is not currently expected to see significant growth or decline in the near future. It simply indicates that the company’s current financial position and potential for growth are not seen as particularly strong or weak. As with any investment decision, it is important to conduct thorough research and consider your own risk tolerance before making any decisions. This rating suggests that the company is viewed as a relatively stable and safe investment option, but not one that is expected to see significant growth in the near future. It is up to individual investors to carefully consider this information and make informed decisions about their investments.

Share Price

This announcement came after the company’s stock opened at $18.42 and closed at $17.9, showing a decrease of 2.29% from the previous day’s closing price of $18.32. The “hold” recommendation is a neutral stance from the brokerages, indicating that investors should neither buy nor sell the stock at this time. This could be due to various factors such as the recent performance of the company, industry trends, and overall market conditions. The decline in PLAINS GP‘s stock price could be attributed to the overall market volatility and recent fluctuations in oil prices. As a midstream energy company, PLAINS GP’s stock is heavily influenced by the fluctuations in the oil and gas industry. Despite the “hold” recommendation and decrease in stock price, PLAINS GP has been performing well in the market. Over the past year, the company’s stock has shown a steady growth of 10%. Some analysts believe that PLAINS GP’s performance in the first quarter and its strong financial position could lead to a potential increase in its stock price in the future.

However, others may be more cautious due to the uncertain market conditions and potential risks associated with the energy industry. It could simply mean that the company’s current stock price is reflective of its overall performance and investors should carefully consider their options before making any decisions about buying or selling PLAINS GP stock. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Plains Gp. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Plains Gp. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Plains Gp. More…

Key Ratios Snapshot

Some of the financial key ratios for Plains Gp are shown below. More…

Analysis

After thoroughly analyzing the fundamentals of PLAINS GP, I have determined that it falls into the category of ‘rhino’ companies according to Star Chart. This means that it has achieved moderate revenue or earnings growth. As such, it may be attractive to investors who are looking for a stable and established company with decent growth potential. One of the strengths of PLAINS GP is its strong dividend performance. This means that the company consistently pays out dividends to its shareholders, which can be appealing to income-seeking investors. In addition, PLAINS GP also has a strong asset base, indicating that it has valuable resources and infrastructure in place to support its operations. In terms of growth, PLAINS GP falls into the medium category. This means that while it may not have explosive growth potential, it is still expected to see steady growth over time. This can be attractive to investors who are looking for a balance between stability and potential for returns. Another aspect to consider is PLAINS GP’s profitability. While it may not be the highest in its industry, it is still at a healthy level. This indicates that the company is able to generate profits from its operations, which is a key factor for its sustainability and potential for future growth. One of the most important factors that I considered in my analysis is PLAINS GP’s health score. Based on its cashflows and debt, the company has received a high score of 8 out of 10. This suggests that PLAINS GP is in a good financial position and has the ability to pay off its debts and fund future operations. This can be reassuring for investors, as it indicates that the company is able to handle any potential financial challenges that may arise. Overall, PLAINS GP appears to be a solid choice for investors who are looking for a well-established company with moderate growth potential, strong dividend performance, and a healthy financial position. Of course, it is important for investors to conduct their own due diligence and carefully consider their own investment goals before making any decisions. More…

Peers

Plains GP Holdings’ business is conducted through its wholly owned subsidiaries, Plains All American Pipeline LP and Plains GP Holdings LLC. Plains All American Pipeline is engaged in the transportation, storage, and marketing of crude oil, natural gas liquids, and natural gas. Keyera Corp is a Canadian company engaged in the business of gathering, processing, transporting, storing and selling natural gas and natural gas liquids. Martin Midstream Partners LP is a publicly traded limited partnership that owns, operates, and develops midstream energy infrastructure assets in the United States.

– Plains All American Pipeline LP ($NASDAQ:PAA)

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates oil and gas pipelines and storage facilities in the United States. The company has a market cap of $8.73 billion and a return on equity of 12.42%. Plains All American Pipeline transports crude oil, natural gas liquids, and refined products through its network of pipelines and storage facilities. The company also provides crude oil and natural gas gathering, transportation, and marketing services to producers and consumers of crude oil and natural gas.

– Keyera Corp ($TSX:KEY)

Keyera Corp is a Canadian energy infrastructure company that owns and operates natural gas processing plants and pipelines. The company has a market capitalization of $6.46 billion as of 2022 and a return on equity of 17.57%. Keyera’s natural gas processing plants are located in Alberta and British Columbia, and the company’s pipelines transport natural gas and natural gas liquids across Alberta.

– Martin Midstream Partners LP ($NASDAQ:MMLP)

Martin Midstream Partners LP is a publicly traded limited partnership that owns, operates, develops, and acquires a diversified portfolio of energy assets and infrastructure. The company’s assets include natural gas processing and transportation, marine transportation, and storage facilities. Martin Midstream Partners LP is headquartered in Houston, Texas.

Summary

According to nine brokerages that are covering Plains GP Holdings, L.P., the average recommendation for investing in the company is “Hold.” This suggests a neutral stance on the company’s prospects, with no strong indication to buy or sell. While it may not be the most enticing recommendation, it is important to note that different brokerages may have varying opinions on the company’s potential.

Investors should also conduct their own research and analysis to make an informed decision on whether to invest in Plains GP. Factors such as the company’s financial performance, market trends, and industry competition should also be considered before making any investment decisions.