Morgan Stanley Raises Plains All American (PAA) Target in Weekly Infrastructure Review

Plains All American Pipeline, L.P. (NASDAQ:PAA) is included among the 14 Under-the-Radar High Dividend Stocks to Buy Now.

On March 18, Morgan Stanley analyst Robert Kad raised the price recommendation on Plains All American Pipeline, L.P. (NASDAQ:PAA) to $23 from $21. It reiterated an Equal Weight rating. The update came as part of the firm’s regular review of North American midstream and renewable energy infrastructure names.

On the Q4 2025 earnings call, CEO Willie Chiang described 2025 as a turning point. He said the company worked through geopolitical tensions, OPEC supply changes, and tariff uncertainty while reshaping itself into more of a pure-play crude operator. A big part of that shift came from selling the NGL business and acquiring the Epic pipeline, now called Cactus III. Chiang said these moves should lead to better cash flow quality, stronger distributable cash flow, and a more stable position across cycles.

Looking ahead, he laid out three priorities for 2026. The company plans to complete the NGL divestiture, integrate Cactus III and capture synergies, and keep pushing on cost efficiency. The target is about $100 million in annual savings by 2027, with roughly half of that expected in 2026. He also pointed to a few recent transactions. The company sold its Mid-Continent lease marketing business for about $50 million and acquired the Wild Horse terminal, which is expected to add around 4 million barrels of storage. Both moves are aimed at shifting toward higher-margin operations.

Plains All American Pipeline, L.P. (NASDAQ:PAA) owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids. Its network includes pipelines, storage, processing, and other assets across key producing regions and major market hubs in the United States and Canada.

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