UPDATE: Jefferies Initiates Coverage on Plains GP Holdings LP on Multiple Positive Factors

In a report published Thursday, Jefferies analyst Christopher Sighinolfi initiated coverage on Plains GP Holdings LP (NYSE: PAGP) with a Buy rating and $26.00 price target.

In the report, Christopher Sighinolfi noted, “PAGP offers: 1) unfettered leverage to PAA Incentive Distribution Rights, 2) peer-leading dividend growth, 3) low leverage, 4) tax-free C-corp. treatment for the foreseeable future, & 5) 1099-DIV cash payments that will be treated as a return of capital for the next few years. PAGP presents an attractive tax-adjusted yield & we initiate with a Buy & $26 PT. It is a top pick.”

Plains GP Holdings LP closed on Wednesday at $21.51.