Pembina Pipeline Maintained at Buy at Stifel FirstEnergy Following Q4 Results; Price Target Kept at C$55.00
09:48 AM EST, 02/26/2024 (MT Newswires) -- Stifel FirstEnergy on Monday reiterated its buy rating on the shares of Pembina Pipeline (PPL.TO, PBA) and its C$55.00 price target after the oil and gas processing and infrastructure company reported fourth-quarter results.
"PPL reported a modest 4Q23 beat and revealed it has signed a new 50 mbbl/d ethane supply agreement for Dow Chemical's ethylene cracker (for which it is currently reviewing potential projects) and a 115 mmcf/d expansion of PGI's Wapiti facility (ISD: 1H26)," analyst Cole Pereira wrote. "Pembina also completed a 90 mbbl/d open season for the Cochin pipeline and signed a new Nipisi pipeline contract with the asset now 50% contracted and progressing towards 100% by year-end. However, an FID for Cedar LNG is now expected mid-2024 vs. 1Q24 prior. Our estimates are largely unchanged, and we reiterate our Buy rating and $55.00/sh TP. Recent updates from PPL continue to reinforce the strength of its incumbent position in the Montney and Duvernay, and differentiated ability to bolt on lower-risk growth opportunities. We expect this to continue driving upside to its 2025E valuation at 10.4x EV/EBITDA, 9.6x P/DCFPS and 19.0x P/E (peers: 10.0x, 9.1x and 15.3x)."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 46.72, Change: -0.12, Percent Change: -0.26