03:03 PM EST, 11/10/2025 (MT Newswires) -- Pembina Pipeline ( PBA ) is making "measurable progress" on its base business despite a potentially weaker marketing business, RBC Capital Markets said in a Monday report.

The company secured incremental volumes across its pipeline systems while executing its capital program in a timely manner and advancing growth initiatives, which is expected to result in positive final investment decisions in the near term, according to the note.

The brokerage said it is encouraged by the company recontracting volumes available for renewal under contracts expiring this year and in 2026, with a 10-year average weighted term, and the dedication of some facilities for the tenure.

RBC, however, cut its 2025 and 2026 earnings before interest, taxes, depreciation, and amortization forecasts on a weaker marketing outlook to CA$4.30 billion ($3.07 billion) and CA$4.36 billion, respectively, from CA$4.33 billion and CA$4.42 billion earlier.

For 2027, RBC said it expects EBITDA growth of 3% on higher volumes from the company's conventional pipelines and full-year contributions from new assets.

RBC maintained its outperform rating on the stock and a price target of CA$62 per share.

Price: 37.39, Change: +0.27, Percent Change: +0.73