Pembina Pipeline's (PBA) low-end of the new fee-based adjusted earnings before interest, taxes, depreciation and amortization per share compound annual growth rate outlook is "deliverable," given the company's conservative margin assumptions, RBC Capital Markets said in a Wednesday note.

RBC said that Pembina's "well-established" platform and funding plan further position the company to deliver the upper-end of its guidance range, thus, also improving the market's perception of the company's stock.

On Tuesday, Pembina Pipeline said it expects compound annual growth of 5% to 7% in fee-based adjusted EBITDA per share through 2030, supported by higher utilization of existing assets and contributions from projects entering service, among others.

With Pembina hedging about 65% of its 2026 frac spread exposure, RBC said it sees this as being "directionally positive" to the company's EBITDA guidance for the year.

RBC maintained its outperform rating on Pembina Pipeline with a price target of 64 Canadian dollars ($46.21).

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