National Bank Financial upgrades Pembina Pipeline stock rating

Published 26/06/2025, 13:22
National Bank Financial upgrades Pembina Pipeline stock rating

Investing.com - National Bank Financial upgraded Pembina Pipeline Corp . (TSX:PPL) (NYSE:PBA) from Sector Perform to Outperform on Thursday, maintaining its price target of C$56.00.

The upgrade comes as National Bank Financial sees attractive growth opportunities across the gas and NGL infrastructure value chain, with the Western Canadian Sedimentary Basin poised to increase production by up to approximately 8.5 bcf/d into the next decade.

National Bank Financial highlighted Pembina’s position as the largest third-party processor of gas in Canada, combined with NGL extraction, ethane supply and other opportunities, noting the company’s sector-leading approximately C$7.50 per share (approximately 15%) unrisked valuation upside profile.

The firm expects the final resolution regarding Alliance run-rate EBITDA to act as a positive catalyst, with National Bank Financial’s estimate at $100 million per year compared to the consensus of approximately $150 million per year.

Pembina Pipeline shares have declined more than 5% year-to-date and are now trading at less than 11 times 2026 estimated EV/EBITDA, compared to peers at approximately 12 times, according to National Bank Financial.

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