CA - Pembina raised at Credit Suisse as expansion initiatives to drive gains

2023-05-25 14:57:23 ET

Pembina Pipeline ( NYSE: PBA ) wobbles between small gains and losses Thursday as Credit Suisse upgraded the stock to Outperform from Neutral with a C$53 price target, citing the company's regional midstream assets in the Western Canadian Basin that "help underpin critical energy activities and are poised to benefit from both volume and margin expansion."

Pembina's ( PBA ) underperformance compared to the broader Canadian energy infrastructure group means the stock offers "sufficient excess return potential" to merit a new Outperform rating, Credit Suisse analyst Andrew Kuske wrote.

The company is embarking on several expansion initiatives that will help it "remain at the epicenter of much of Western Canada's regional energy infrastructure sector for the foreseeable future," according to Kuske.

More on Pembina Pipeline:

• Financial and valuation comparison to sector peers
• Analysis: Pembina Preferred Shares Remain Undervalued With 8%-Plus Yields
• Stock price return: Down 7% YTD, down 22% in the past 12 months

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