Tudor, Pickering, Holt on Tuesday reiterated its buy rating on the shares of Pembina Pipeline (PPL.TO, PBA) while raising its price target to C$64.00 from an undisclosed prior level as its adjusted its models following the company's fourth-quarter results.

"Updating our PPL model to reflect new conventional pipeline projects, plant data, and a roll forward in valuation to 2028 metrics. Our FY'26 Adj. EBITDA estimate increased by C$74MM to C$4,388MM (Street C$4,302MM), while FY'27 is higher by C$92MM to C$4,660MM (Street C$4,521MM). A portion of the increase was attributable to higher fee-based earnings in facilities, but the majority of the increase was driven by the Marketing segment, which benefited from wider frac spreads over the forecast period, due to lower AECO and a higher NGL strip. We're currently at C$446MM for FY'26, which is significantly higher than current guidance at ~C$350MM. While PPL still needs to get through contracting season, we anticipate if current prices hold or improve, we would expect management to adjust guidance accordingly on the Q1'26 call ... On valuation, we're adjusting our price target to C$64/shr and maintaining our Buy rating," analyst AJ O'Donnell wrote.

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