Pembina Pipeline (PBA) Price Target Raised Following Encouraging Growth Update

Pembina Pipeline Corporation (NYSE:PBA) is included among the 14 Best Infrastructure Stocks to Buy Now.

Pembina Pipeline Corporation (NYSE:PBA) is a leading energy transportation and midstream service provider that has been serving North America’s energy industry for 70 years.

On April 8, BMO Capital upped its price target on Pembina Pipeline Corporation (NYSE:PBA) from C$60 to C$63, while maintaining a ‘Market Perform’ rating on the shares. The revised target reflects an upside potential of almost 4% from the current share price.

The move comes following an April 7 announcement by Pembina Pipeline Corporation (NYSE:PBA) that it expects to deliver 5% to 7% compound annual fee-based adjusted EBITDA per share growth through 2030. The outlook is supported by the company’s higher utilization of existing assets and ​contributions from sanctioned new projects entering service. The guidance represents a step-up of around 100 basis points from the midstream operator’s prior 2024-26 growth target.

Pembina Pipeline Corporation (NYSE:PBA) also revealed that it had entered into incremental hedges for ​2026. According to the company, around 65% of ​its 2026 frac spread exposure is currently hedged, with ‌around ⁠40% hedged in Q1 and Q4 and about 90% in the second and third quarters.

Pembina Pipeline Corporation (NYSE:PBA)’s long-term goals beyond 2030 include continued investments in the core business to keep up with the rising demand, as well as additional investments in LNG, LPG, gas-to-power, and emissions reduction infrastructure.

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