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Research Alert: CFRA Keeps Buy Opinion On Shares Of Enbridge Inc.

05/10/2021 08:59

12:55 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of US$45, raised by US$7, reflects a 10.5x multiple of enterprise value to projected '22 EBITDA, about in line with peers. We lift our '21 EPS estimate by C$0.03 to C$2.69, but cut '22's by C$0.10 to C$3.00. ENB posts Q1 EPS of C$0.81, vs. C$0.83, beating the consensus view by C$0.09. ENB is planning a fairly diversified capital program through '23, with about C$17B of plans that is split between Liquids (31%), Gas Transmission (29%), Gas Distribution & Storage (21%), and Renewable Power (19%). Line 3 replacement appears to be going well, but we do continue to see regulatory risk around Line 5 in Michigan. Longer-term, we think ENB has nice exposure to supplying U.S. LNG export terminals, a business that we think should do well as we think overseas demand for natural gas will remain strong. The company is also making some forays into carbon capture efforts. Shares yield 6.9%, adding to total return potential.