Plains GP Holdings reinstated with a Sell at Goldman Sachs

Goldman Sachs reinstated coverage of Plains GP Holdings with a Sell rating and $13.50 price target. The analyst reinstated coverage of 18 North American midstream stocks, taking a “mostly selective view” on North America midstream energy. The fundamental backdrop for midstream is somewhat mixed, with oil prices still strong, natural gas prices still weak, and the meaningfully lower U.S. drilling rig count likely driving slower overall supply growth in the next few quarters, the analyst tells investors in a research note. The firm believes investor focus needs to shift away from broad commodity themes and towards micro considerations on both the asset and financial fronts.