Our 12-month target price is based on our dividend discount model (DDM) which uses a 7% discount rate. We maintain our $40.00 12-month target price and our Outperform ranking. If our dividend outlook is correct, the market is using a 10% dividend discount on Pembina; this matches what we are seeing the market apply to other yield companies such as Brookfield Renewable (which has no oil price exposure).
18 Jan 2016
Pembina Issues $170 mm in Preferred Shares; Sets Up for $3.1 billion Capital Outlay
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Pembina Issues $170 mm in Preferred Shares; Sets Up for $3.1 billion Capital Outlay
Pembina Pipeline Corporation (PPL:TSE) | 0 0 0.8% | Mkt Cap: 20,478m
- Published:
18 Jan 2016 -
Author:
Steven I. Paget -
Pages:
6
Our 12-month target price is based on our dividend discount model (DDM) which uses a 7% discount rate. We maintain our $40.00 12-month target price and our Outperform ranking. If our dividend outlook is correct, the market is using a 10% dividend discount on Pembina; this matches what we are seeing the market apply to other yield companies such as Brookfield Renewable (which has no oil price exposure).