Plains All American Pipeline (PAA) has become a pure-play crude oil midstream platform following the sale of its Canadian natural gas liquids asset, with basin production growth, capital projects, and efficiency gains likely to provide tailwinds into 2027, RBC Capital Markets said in a Friday research report.

The company's disciplined capital allocation allows it to tap into organic and acquisition opportunities, driving sustained cash flow generation and distribution growth, according to the note.

The shift to demand-pull dynamics as inventories worldwide compress positions North American crude exports as vital to global energy demand, which could enable the company to capitalize on opportunities across volatile markets, analysts wrote.

RBC reiterated its sector perform rating on the stock and boosted its price target to $26 from $23.

Price: 23.80, Change: -0.10, Percent Change: -0.42