DTM - NuStar Plains All American Pipeline raised at Raymond James

2023-04-21 11:32:10 ET

NuStar Energy ( NYSE: NS ) edges higher in Friday's trading as Raymond James upgraded the stock to Outperform from Market Perform with a $20 price target, citing "continued leverage to inflation dynamics, solid-enough core volumes, and an attractive valuation."

NuStar's ( NS ) "solid underlying business trajectory coupled with significant leverage to inflation dynamics can drive a positive re-rating, especially for a stock that trades below the group average on valuation," Ray Jay's Justin Jenkins wrote.

Jenkins also raised Plains All American Pipeline ( NASDAQ: PAA ) to Strong Buy from Outperform with a $17 PT, seeing the company as "the largest beneficiary of a more active OPEC+, while the underlying story continues to improve, and valuation remains very compelling."

Raymond James also downgraded Magellan Midstream Partners ( MMP ) to Market Perform from Outperform and Williams ( WMB ) to Outperform from Strong Buy.

Magellan ( MMP ) "remains an absolute best-in-class business" but has met Ray Jay's target after a strong performance, and Williams ( WMB ) represents a long-term core holding but could be slowed in the short term by lowered estimates and sentiment.

Raymond James also initiated coverage on DT Midstream ( DTM ), Hess Midstream ( HESM ) and Western Midstream Partners ( WES ) with Outperform ratings, and Equitrans Midstream ( ETRN ) and Kinetik Holdings ( KNTK ) at Market Perform.

NuStar's ( NS ) "financial performance was solid during 2022, and guidance for 2023 indicates this is likely to continue going forward," DT Analysis writes in a report published recently on Seeking Alpha .

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