Enbridge Is Well Positioned With Somewhat Dichotomous Business, Credit Suisse Says

  • Credit Suisse analyst Andrew M. Kuske upgraded the shares of Enbridge Inc ENB from Underperform to Neutral.
  • For the year-to-date, the company delivered a negative ~5% return versus the S&P/TSX Composite’s 1.2% and the Alerian’s AMNA performance of negative 3.5%, said the analyst.
  • The analyst believes some of the Mainline issues are better understood now and are more effectively reflected in the share price.
  • In the quarters ahead, the analyst anticipates some of the noise in relation to the current ENB Mainline evolution to be resolved as witnessed in past cycles with a risks/rewards balance.
  • The analyst focuses on the impacts from potential tariff reduction that may fall into a net impact of CA$250 million-CA$500 million of EBITDA in reasonable scenarios.
  • In the analyst’s view, Enbridge is well positioned with a somewhat dichotomous business, with one half facing better growth prospects and the other half less growth potential.
  • Price Action: ENB shares are trading higher by 2.72% at $37.73 on the last check Wednesday.


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