Canaccord Bumps TP and Comments on the Space -G&MIn a research note reviewing first-quarter earnings season for midstream companies, Canaccord Genuity’s John Bereznicki made these target changes: - Pembina Pipeline Corp. (
, “buy”) to $56 from $54. Average: $53.
“Despite rising interest rates and recessionary fears, domestic midstream equities have risen an average of 18 per cent year-to-date,” he said. “Midstream dividend yields are now at the lower-end of their historic spreads to the Canada 10-year bond, which we believe is reflective of strong industry fundamentals. In our view, the sector’s ability to grow free cash flow in an inflationary environment also makes it appealing to investors.
“There are no changes to any of our recommendations as a result of these changes. For those looking for relative commodity price beta we recommend KEY, while ALA remains our defensive pick. We also believe PPL enjoys strong growth optionality given its large, integrated asset base.”