Pembina Pipeline (PPL.TO) retained its Sector Perform rating and $57 price target, National Bank of Canada said in a Friday note.
The bank said the price target was based on a risk-adjusted dividend yield of 5.0% applied to the estimated 2025 dividend of $2.84 per share, a 12.0x multiple of its estimated 2025 Free-EBITDA and discounted cash flow per share valuation of $58.00.
"Combined with the company prioritizing excess free cash flow towards debt repayment through 2025 while evaluating the merits of share repurchases, we expect modest changes to our current estimates and valuation ahead of rolling over our valuation estimates into 2026e early in the new year," National Bank said.
Pembina recently unveiled its 2025 adjusted EBITDA guidance of $4.2 billion to $4.5 billion with a capital investment program of $1.1 billion while it continues to develop additional projects, which if sanctioned, could increase the 2025 capital program by up to $200 million.
Pembina's share price was down less than 1% at last look to $54.45 on the TSX.
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