Tudor, Pickering, Holt on Wednesday maintained its buy rating on the shares of Pembina Pipeline (PPL.TO, PBA) while cutting its prices target to C$58.00 from C$59.00 after the oil and gas infrastructure and processing company released 2026 guidance.

"Refreshing our model following PPL's FY'26 outlook published Monday after the close. Overall, TPHe estimates moved lower with FY'26 declining by C$104MM to C$4.332B (Street C$4.345B, guide C$4.275B), and FY'27 lower by C$34MM to C$4.586B (Street C$4.539B). Moving parts of the update were largely driven by a lower Marketing outlook after management indicated a C$150MM headwind in FY'26. Our current estimate sits at C$362MM versus guidance of C$345MM and the average Street estimate of C$473MM (likely elevated due to stale estimates). Other FY'26 adjustments to our model include: (1) incorporating the newly sanctioned C$200MM Fox Creek-to-Namao pipeline project (ISD Q1'27), (2) lower Alliance contributions (C$28MM) due to underestimation of revenue sharing impacts, and (3) a modest tailwind from lower corporate G&A (C$20MM). Impacts to our estimates beyond FY'27 were minimal, as lower Marketing results were largely offset by incremental contributions from new projects. Following these changes, our 5-year fee-based EBITDA CAGR stands at 3.6% over the 2025-2030 timeframe. This outlook does not reflect the C$800MM of additional conventional pipeline opportunities being evaluated by the company, which if sanctioned, would increase our growth outlook. Maintain our Buy rating but lowering our price target by C$1 to C$58/shr," analyst AJ O'Donnell wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)