UPDATE: Oppenheimer Initiates Coverage on Plains GP on Positive Outlook

In a report published Thursday, Oppenheimer analyst Bernard Colson initiated coverage on Plains GP (NYSE: PAGP) with an Outperform rating and $30.00 price target.

In the report, Oppenheimer noted, “We initiate coverage of PAGP with an Outperform rating and $30 price target. There is much to like about an investment in PAGP, including exposure to rapidly developing US crude oil infrastructure focused on major shales and leverage to PAA's attractive distribution growth (10% growth at PAA equals 26% at PAGP in 2014E). Foundational cash flow is fee-based, but PAA maintains optionality to evolving oil price dynamics. In addition, the (admittedly low) current yield is expected to be shielded from taxes for a minimum of three years.”

Plains GP closed on Wednesday at $23.69.