Market Overview

Bank Of America Upgrades Enbridge On Derisked Story

Share:
Bank Of America Upgrades Enbridge On Derisked Story
Related ENB
Benzinga's Top Upgrades, Downgrades For November 6, 2018
Earnings Scheduled For November 2, 2018
Record low Canadian crude price shows oil sands best days are past (Seeking Alpha)

Enbridge Inc (USA) (NYSE: ENB) reported strong second-quarter earnings on Aug. 3.

The Analyst

Bank Of America Merrill Lynch's Dennis P. Coleman upgraded Enbridge from Neutral to Buy and he increased his price target for the stock from $49 to $50.

The Thesis

The analyst continues to view the company as a "show me" story, but he upgraded the stock because he's more confident on its progress in project execution of the Line 3 Replacement project, funding and asset sales and the simplification of transactions. He added that uncertainties still exist, but the company deserves to be valued in line with its large-cap midstream/MLP peers because it managed to largely derisk its operations.

Investors have been concerned about funding and balance sheet of Enbridge, but the $7.5 billion from the announced asset sales will provide a good support for the company's $22 billion CapEx and $4 billion debt payment from 2018 to 2020, the analyst said.

"Enbridge is in a solid balance sheet position to eliminate the Dividend Reinvestment and Share Purchase Plan (DRIP) starting 2019 and is on track to achieve 5.0x leverage by year-end," Coleman said in the note.

Price Action

Enbridge closed Friday up 3.2 percent at $36.02.

Related Links:

Benzinga's Top Upgrades, Downgrades For August 17, 2018

Earnings Scheduled For August 3, 2018

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: Bank of America Merrill Lynch Dennis ColemanAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (ENB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
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.

Oppenheimer: Yum China Takeout Speculation Is Intriguing, But Shares No Longer Undervalued

10 Reasons Why JPMorgan Turned Bearish On Dean Foods