Pembina Pipeline (PBA) management remains confident in its 5% to 7% fee-based EBITDA/share compound annual growth rate guidance through 2030, RBC Capital Markets said.

This CAGR target consists of 400 basis points from sanctioned growth and volume growth, another 200 basis points from projects under development, and around another 100 basis points from other organic and inorganic opportunities, with the company's management showing a preference for tuck-in acquisitions.

Pembina also sees opportunities to extend its growth rate beyond 2030, supported by favorable energy fundamentals in the Western Canadian Sedimentary Basin and its project execution capabilities. The company sees opportunities to strengthen its existing infrastructure and expand into areas including LNG exports and data center-related power generation.

Pembina Pipeline's commitment to its financial guardrails, as well as its equity self-funded model for its sanctioned projects, makes the company appealing to investors. Pembina anticipates remaining within the target debt/EBITDA range of 3.50x to 4.25x despite higher capital spending from major projects, according to the note Monday.

RBC maintained its outperform rating with a price target of CA$77 ($55.34).

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