Market Overview

Canaccord Downgrades Enbridge on Price Strength

Share:
Related ENB
Benzinga's Top Upgrades, Downgrades For November 6, 2018
Earnings Scheduled For November 2, 2018
Heavy Canadian crude price has more than doubled since cuts announced (Seeking Alpha)

Analyst Juan Plessis at Canaccord on Thursday, April 17, 2014, downgraded Enbridge Inc. (NYSE: ENBfrom Buy to Hold.

Shares of the company are up $0.24 or 0.51 percent to $47.11 per share. 

The company cited share price strength as a reason why it lowered its rating. Shares of Enbridge have leaped about 21 percent in the past six motnhs alone and are now within five percent of the firm's $54.00 price target.

The firm continued, “Enbridge continues to develop an attractive $36 billion enterprise-wide portfolio of commercially secured growth projects. The company's strong visible growth profile should allow it to deliver close to 12% annual EPS growth through 2017, likely with matching dividend increases. However, we believe the current share price reflects the company's strong growth profile. Note that Enbridge's return profile is tilted, meaning project returns improve over the first several years of commercial service. Our valuation could improve as projects near completion, new projects are announced and as throughput volumes improve.”

Below are some investment risks that Canaccord noted:

  • ENB is subject to risks related to politicaland economic instability, currency volatility, market volatility, government regulations, foreign investment rules, security of assets, and environmental considerations;
  • The operation of liquids pipelines are dependent upon the supply of and demand for crude oil and other liquid hydrocarbons;
  • Earnings are subject to the actions of various regulators, actions of the regulators related to tariffs, tolls and facilities impact income from operations;
  • Increased competition could arise from new feeder systems servicing the same geographic regions as the company's feeder pipelines and gas transportation and gas distribution areas;
  • Pipeline leaks are an inherent risk of operations; and
  • Commodity price volatility could impact the profitability of certain operations.

The firm has also said that its price target is derived from a number of factors, valuation metrics, earnings and dividend yields, and earnings multiples. Canaccord's target represents a 2015 price to earnings ratio multiple of 22x.

Latest Ratings for ENB

DateFirmActionFromTo
Nov 2018Wells FargoUpgradesMarket PerformOutperform
Sep 2018CitigroupReinstatesNeutral
Aug 2018Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for ENB
View the Latest Analyst Ratings

Posted-In: Canaccord Juan PlessisAnalyst Color Downgrades Analyst Ratings

 

Related Articles (ENB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MOSJP MorganDowngrades33.0
BACKeefe Bruyette & WoodsDowngrades29.0
AMTMorgan StanleyDowngrades170.0
EBAYMorgan StanleyDowngrades33.0
UNITMorgan StanleyDowngrades16.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Baird Upgrades SolarCity After 35% Pullback In Share Price

Hawaiian Airlines and Air China Sign Codeshare Agreement