In a report released yesterday, Benjamin Pham from BMO Capital maintained a Buy rating on Pembina Pipeline (PBA – Research Report), with a price target of C$59.00.
Benjamin Pham has given his Buy rating due to a combination of factors that highlight Pembina Pipeline’s strong financial performance and growth potential. The company’s Q4/24 results were impressive, with adjusted EBITDA reaching a record $1,254 million, surpassing both consensus and internal expectations. This performance was driven by strong marketing results and volume improvements in fee-based assets, leading to a full-year adjusted EBITDA that exceeded the high end of guidance.
Additionally, Pembina Pipeline has unveiled several potential new organic growth projects, such as a gas power project for a data center and a straddle plant, which are not yet reflected in the current valuation. The company’s solid balance sheet, with a debt-to-EBITDA ratio at the lower end of its target range, and its positive free cash flow position further support the Buy rating. These factors, combined with an undemanding valuation and a reaffirmed 2025 EBITDA guidance, suggest a promising outlook for Pembina Pipeline, justifying the Buy recommendation.
PBA’s price has also changed slightly for the past six months – from $40.190 to $36.350, which is a -9.55% drop .