Should I Buy PAA? PAA 2026 Analysis

Should You Buy Plains All American Pipeline LP (PAA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

19.730

1 Day change

0.92%

52 Week Range

20.320

Analysis Updated At

2026/01/26

Plains All American Pipeline LP (PAA) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock offers strong income potential with a high dividend yield, positive analyst sentiment, and improving financial performance, despite short-term technical weakness.

Technical Analysis

The technical indicators are mixed but lean bearish in the short term. The MACD is negatively expanding below zero, and the RSI indicates the stock is oversold at 13.333. Moving averages are bearish, with SMA_200 > SMA_20 > SMA_5. However, the oversold RSI suggests potential for a rebound. Key support is at 16.283, and resistance is at 17.635.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Analysts have raised price targets recently, with Mizuho and Scotiabank citing strong tailwinds in crude platform and energy infrastructure.
High dividend yield (8.1%) attracts income-focused investors.
Net income surged 146.50% YoY in Q3 2025, showing strong profitability growth.

Neutral/Negative Catalysts

Revenue dropped by 12.50% YoY in Q3 2025, reflecting potential challenges in top-line growth.
Short-term technical indicators are bearish, with MACD and moving averages signaling weakness.
No significant hedge fund or insider trading activity to indicate strong institutional confidence.

Financial Performance

In Q3 2025, revenue declined by 12.50% YoY to $11.15 billion. However, net income surged 146.50% YoY to $387 million, and EPS remained stable at 0.44. Gross margin improved to 42%, indicating better operational efficiency.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are optimistic, with recent price target increases from Mizuho ($23) and Scotiabank ($22). Both firms maintain an Outperform rating, citing strong crude platform performance and energy infrastructure tailwinds. Morgan Stanley also raised its target to $21, highlighting contracted cash flow protection in the midstream sector.

8 Analyst Rating

Wall Street analysts forecast PAA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAA is 20.19 USD with a low forecast of 16.5 USD and a high forecast of 23 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

4 Hold

1 Sell

Hold

Current: 19.550

Low

16.5

Averages

20.19

High

Current: 19.550

Low

16.5

Averages

20.19

High

BofA

Neutral -> Underperform

downgrade

$19

AI Analysis

2026-01-28

New

Reason

BofA

Price Target

$19

AI Analysis

2026-01-28

New

downgrade

Neutral -> Underperform

Reason

BofA downgraded Plains All American to Underperform from Neutral with a $19 price target.

BofA

Neutral -> Underperform

downgrade

$19

2026-01-28

New

Reason

BofA

Price Target

$19

2026-01-28

New

downgrade

Neutral -> Underperform

Reason

As previously reported, BofA downgraded Plains All American (PAA) and Plains GP Holdings (PAGP) to Underperform from Neutral with unchanged price targets of $19 each. Plains All American has been the top performing MLP in the analyst's coverage in recent months with a roughly 8.5% advance, but the firm does not see a materially changed outlook given that it is 100% crude based, the analyst tells investors. Compared to other peers with more contracts or terminal value, the firm believes the Plains' are "less attractive for the risk," the analyst added.

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PAA Should I Buy

PAA Should I Buy

Should You Buy Plains All American Pipeline LP (PAA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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