Baird says buy MLPs now after seasonal weakness, upgrades PAA

|By:, SA News Editor

MLPs have recently underperformed the broader market, consistent with historical seasonal patterns of weakness in November on tax-related sales, and Baird says it would buy now (

The seasonal performance trend provides an attractive tactical entry point on the group, Baird believes, driving upgrades of Plains All American (PAA), Crestwood Midstream (CMLP), Breitburn Energy (BBEP) and Summit Midstream (SMLP) to Outperform.

The firm also thinks Atlas Energy (ATLS), Atlas Resource (ARP), Legacy Reserves (LGCY) and Vanguard Natural (VNR) look relatively attractive and ripe for potential upgrades in the event of further weakness through Thanksgiving.