Brokerages raise PTs on Pembina Pipeline after Cedar LNG offtake agreement

ARC Resources

05/04/2024 14:09

** Canadian energy transportation company Pembina Pipeline
 PPL.TO  enters LNG offtake agreement with Canadian firm ARC
Resources  ARX.TO  for delivery of natural gas to PPL's Cedar
LNG project
    ** Final investment decision expected by mid-2024
    ** Brokerage ATB Capital Markets ("outperform") raises PT on
PPL to C$56 from C$55, a 15.8% upside on stock's last close
price
    ** "The announcement provides material confidence in the
projec's viability and we are constructive on the growth outlook
given the Company's ability to deploy capital and successfully
develop projects that preserve economics" - ATB Capital Markets
    ** Brokerage TD Cowen ("buy") raises PT to C$53 from C$52, a
9.5% upside on last close
    ** "PPL's continued commitment to the company's financial
guardrails informs our view that the company's risk profile will
not increase significantly if it reaches a positive FID on Cedar
LNG in the near term," - TD Cowen
    ** 12 of 16 brokerages rate the stock "buy" or higher, 4
"hold" and none "sell" or lower; their median PT is C$53 - LSEG
data
    ** Up to last close, PPL has risen 6% YTD

 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com;))