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Research Alert: CFRA Keeps Buy Opinion On Shares Of Pembina Pipeline Corporation

05/10/2021 20:16

12:10 AM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of C$43, raised $2, reflects a 10.1x multiple of enterprise value to projected '22 EBITDA, slightly below PPL's historical forward average. We cut our '21 EPS estimate by C$0.17 to C$2.25, but lift '22's by C$0.15 to C$2.60. Q1 EPS of C$0.54, vs. C$0.38, missed the consensus view by C$0.07. Pembina started up its Price Rupert Terminal project in Q1, and two shipments of propane (destined for overseas markets) have already been dispatched. We think Asian demand for propane should remain strong in '21 and into '22, driven in part by the global re-opening of the economy, but also from secular demand in the chemicals industry. PPL has signed a one-year deal with a subsidiary of Japanese conglomerate Mitsui to take such cargoes, and we think it could be a precursor to a longer-term deal. PPL reiterated its '21 EBITDA guidance range of C$3.2B-C$3.4B, and we think PPL can self-fund both its capex plan and its dividend (yielding 6.6%) solely from operating cash flows.