RBC Capital Believes Pembina Pipeline (TSX: PPL) Won’t Stop Here

By Ryan Adsit

Wall Street analyst has provided a review for the Materials company today, but retained the same rating on the stock. Pembina Pipeline (TSX: PPL) received a Buy rating from RBC Capital’s analyst Biraj Borkhataria, with a C$52 price target.

According to TipRanks.com, Borkhataria is a 2-star analyst with an average return of 0.1% and a 44.4% success rate. Borkhataria covers the Basic Materials sector, focusing on stocks such as Jagged Peak Energy Inc, Continental Resources, and Royal Dutch Shell A.

Currently, the analyst consensus on Pembina Pipeline is Strong Buy and the average price target is C$49.90, representing a 13.4% upside.

In a report issued on June 5, Desjardins also reiterated a Buy rating on the stock with a C$50 price target.

Pembina Pipeline’s market cap is currently C$17.64B and has a P/E ratio of 34.5.

Pembina Pipeline Corp. operates as a transportation and midstream services company. The company owns and operates pipelines that transport various hydrocarbon liquids, including conventional and synthetic crude oil, heavy oil and oil sands products, condensate and natural gas liquids produced in western Canada. It also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. The company operates through the following segments: Conventional Pipelines, Oil Sands & Heavy Oil, Midstream, and Gas Services. The Conventional Pipelines segment consists of the tariff based operations of pipelines and related facilities to deliver crude oil, condensate and natural gas liquids. The Oil Sands & Heavy Oil segment consists of the syncrude, horizon, nipisi and mitsue pipelines, and the cheecham lateral, which pipelines and related facilities deliver synthetic crude oil produced from oil sands. The Midstream segment engages in extraction and fractionation facilities, terminalling and storage hub services under a mixture of short, medium and long-term contractual arrangements. The Gas Services segment consists of natural gas gathering and processing facilities, including nine shallow and deep cut sweet gas processing plants and gathering systems. Pembina Pipeline was founded on September 29, 1954 and is headquartered in Calgary, Canada.

The company’s shares closed last Wednesday at $43.99, close to its 52-week high of $44.65.