RBC :Pembina's Better-Than-Expected Q3 Target Price $58
11:08 AM EST, 11/07/2022 (MT Newswires) -- RBC Capital Markets said over the weekend that Pembina Pipeline Corp. (PPL.TO) posted better-than-expected results in the third quarter that contributed to an increase in its annual guidance.
Pembina raised its 2022 EBITDA guidance in the range of $3.63 billion to $3.73 billion from the previous target of $3.58 billion to $3.68 billion.
RBC also noted Pembina's exposure to the western Canadian sedimentary basin that differentiates western Canadian focused midstreamers from their North American peers.
"In our view, Pembina remains the cleanest way to play this trend in our coverage universe and is included on the RBC Global Energy Best Ideas List," RBC said.
RBC gave Pembina a $58.00 price target with an outperform rating.
Meanwhile, National Bank of Canada increased Pembina's price target to $46.00 from $45.00 while maintaining its sector perform rating.
The revision was made after Pembina's adjusted EBITDA of $967 million beat the bank's estimate of $899 million and street forecast of $883 million.