Citi's Comments and TP Bump- G&M In a note previewing its fourth-quarter results, Citi’s Spiro Dounis increased his Pembina Pipeline Corp. (
) target by $1 to $47 with a “neutral” rating. The average is $51.70.
“We adjust our model ahead of earnings and lift our TP to $47 from $46 to reflect the accretive Aux Sable and Alliance acquisition,” he said. “Our ‘24 EBITDA estimate of $4.2-billion exceeds the high-end of the guidance range of $4.0-billion to reflect a three-quarter benefit ($0.25-billion) from the impending acquisition. We expect PPL to exit ‘23 above a $4-billion EBITDA run-rate and see organic basin growth driving incremental volumes through the system. Lower ‘24 Marketing EBITDA and Cochin rates are ‘24 EBITDA headwinds. Notably, we estimate an more than $50-million headwind from lower NGL prices in ‘24 vs. ‘23 levels. Delays or a slow ramp in Coastal Gas Link and/or the TMX pipeline remain the primary risk to our estimates due to the impact on overall Canadian basin growth.”