Stock Price & Analysis

Based on the analysis of Plains GP Holdings (PAGP), the stock is currently trading near its average analyst target price of $21.50, with a moderate buy consensus among analysts. Given the strong financial performance and positive 2025 outlook, PAGP is a moderate buy, but investors should be cautious due to its current valuation levels.

The price prediction for PAGP stock in 2025 is $22.07, driven by Fibonacci resistance levels and analyst upgrades. The stock is expected to reach $24.00, supported by strong earnings and expanded asset growth. Current price stability near the Fibonacci pivot of $20.85 indicates potential upside.

The S1 support level for PAGP Stock is $20.05 ,The R1 resistant level for PAGP Stock is $21.56.

As of the end of day on 2025-03-14, the price of PAGP Stock was $21.11.

The target price for PAGP Stock according to analyst rating is 21.50, with the highest price target at 24.00 and the lowest at 19.00. Analysts have a Moderate Buy rating on PAGP Stock overall.

The market cap of PAGP is $4.2B.

Analysis and Insights

Valuation Metrics:

Plains GP Holdings LP (PAGP) currently exhibits several valuation metrics that suggest it may be overvalued:

1. Price-to-Earnings (P/E) Ratio: PAGP's P/E ratio of 39.58 is significantly higher than the industry average, indicating that investors are paying a premium for earnings.

2. Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio of 10.12 suggests a high valuation relative to earnings, which may not be sustainable in the current market environment.

3. Price-to-Sales (P/S) Ratio: The P/S ratio of 6.86% is elevated, signaling that the market is pricing in strong future growth prospects.

4. Price-to-Book (P/B) Ratio: The P/B ratio of 7.25% is significantly above the industry average, indicating that the market expects high returns on equity.

5. Dividend Yield: The dividend yield of 7.25% is attractive but may not justify the high valuations if growth slows.

Analyst Sentiment:

Analyst opinions on PAGP are mixed, with a range of price targets from $17.50 to $26.00. While some analysts have upgraded the stock, citing strong demand in energy infrastructure, others have downgraded it, citing full valuations and expectations of range-bound commodity prices.

Market Trends:

The U.S. market appears overvalued across several valuation models, with the Buffett Indicator and Price/Earnings Model suggesting high valuations. Economic risk factors, such as an inverted yield curve, signal potential recession risks, which could impact PAGP's performance.

Sentiment and Technical Analysis:

The VIX Fear Index indicates moderate expected market volatility, suggesting cautious sentiment. PAGP's stock price has recently crossed its average analyst target, prompting discussions about whether it is overvalued.

Conclusion:

Given the high valuation metrics, mixed analyst sentiment, and broader market overvaluation, PAGP appears to be overvalued. However, the company's strong financial results and positive sector outlook could justify some of the premium. Investors should exercise caution and consider the broader economic risks.

Plains GP Holdings, L.P. owns and operates critical midstream infrastructure systems that connect various producing regions to key demand centers and export terminals. The Company’s assets and the services it provides are primarily focused on crude oil and natural gas liquids (NGL). The Company has two segments: Crude Oil and Natural Gas Liquids (NGL). The Crude Oil segment’s operations generally consist of gathering and transporting crude oil using pipelines, gathering systems, trucks and at times on barges or railcars, in addition to providing terminalling, storage and other facilities-related services utilizing its integrated assets across the United States and Canada. The NGL segment’s operations involve natural gas processing and NGL fractionation, storage, transportation and terminalling. The segment provides gathering, fractionation, storage, and/or terminalling services to third-party customers for a fee, and also engaged in merchant activities that support the assets.

Price Prediction for PAGP Stock by 2030

Based on current trends and analyst expectations, Plains GP Holdings (PAGP) is projected to reach a stock price of $35 to $50 by 2030. This prediction is supported by the company's strong financial performance, including exceeding guidance and a positive 2025 outlook, as well as its expanded asset base and growth potential in the energy sector. Analysts have set a Moderate Buy consensus with an average price target of $21.50, but long-term growth could drive significant appreciation.

PAGP has a total of 4200 employees.