Loading...
Back to narrative

PAA: Completed Buyback And Lower Risk Profile Will Support Upside

PAA: Increased Buybacks And Shareholder Returns Will Signal Future Upside Potential

PAA logo
PAA
AnalystConsensusTarget
Not Invested
Published 22 Aug 2024

Update shared on 03 Dec 2025

Fair value Increased 0.58%
Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
2.5%
7D
2.8%

Analysts modestly raised their price target on Plains All American Pipeline by approximately $0.12 per share, citing a slightly lower perceived risk profile, improved long term profit margin assumptions, and a marginally better revenue trajectory that together support a still reasonable future earnings multiple.

What's in the News

  • Completed share repurchase program announced November 2, 2020, with a total of 32,012,387 shares bought back for $310.6 million, representing approximately 4.47% of shares outstanding (company filing).
  • No additional shares were repurchased between July 1, 2025 and September 30, 2025 under the existing authorization, indicating the program has effectively run its course in the current tranche (company filing).
  • Finalization of the buyback may modestly enhance per share metrics over time by reducing the share count, and it may also signal management’s prior confidence in the company’s valuation (company filing).

Valuation Changes

  • The fair value estimate has risen slightly, moving from approximately $20.35 to $20.47 per unit, reflecting a modestly more optimistic intrinsic valuation.
  • The discount rate has fallen slightly, from about 7.49 percent to 7.46 percent, signaling a marginal reduction in the perceived riskiness of future cash flows.
  • Revenue growth assumptions have become slightly less negative, improving from roughly negative 1.00 percent to negative 0.90 percent, indicating a somewhat better outlook for top line trends.
  • Net profit margin expectations have risen modestly, from about 3.33 percent to 3.42 percent, implying a small anticipated improvement in operating efficiency or pricing power.
  • The future P/E multiple has fallen slightly, from around 11.86 times to 11.54 times, suggesting a marginally more conservative stance on how the market may value future earnings.

Have other thoughts on Plains All American Pipeline?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.