Pembina Pipeline, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Praneeth Satish from Wells Fargo maintained a Sell rating on the stock and has a C$48.00 price target.
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Praneeth Satish has given his Sell rating due to a combination of factors affecting Pembina Pipeline’s future performance. The analyst foresees a slowdown in growth and a contraction in valuation multiples, leading to a cautious outlook. Key contracts on the Peace pipeline are nearing expiration between 2027 and 2029, coinciding with increasing competition from other companies, which could result in significant volume losses and an estimated EBITDA impact of approximately C$300 million.
Despite management’s reassurances about mitigating competitive pressures and successful re-contracting efforts, Satish remains skeptical. The analyst anticipates risks to the company’s 2026 EBITDA due to uncertain marketing profits and unhedged frac spreads. Consequently, the price target has been lowered to C$48 per share, reflecting reduced EBITDA estimates and a slight decrease in projected dividend growth.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PBA in relation to earlier this year.