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Research Alert: CFRA Initiates Coverage On Shares Of Enbridge With Buy Opinion
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Research Alert: CFRA Initiates Coverage On Shares Of Enbridge With Buy Opinion
Jun 21, 2024 9:29 AM

12:10 PM EDT, 06/21/2024 (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 is CAD55, an 11x multiple of enterprise value to projected 2025 EBITDA, slightly below ENB's historical forward average, on rising regulatory risk. ENB operates the world's longest crude oil and liquids transportation system, with significant natural gas gathering, transmission, and midstream businesses. We start our 2024 EPS estimate at CAD2.95 and 2025's at CAD3.29. ENB has completed its gas utility acquisitions, diversifying the asset base slightly away from oil and gas. ENB's Mainline pipeline moved more than 3.1 mmb/d in Q1, near capacity, and with a new tolling agreement now in place, we think prospects remain good. We think total capex will be about CAD7 billion in 2024, and with dividends likely chewing up an additional CAD8 billion, we expect operating cash flows to fall slightly short of meeting both needs. We think the balance sheet is faring well enough to support the dividend anyway (7.7% yield), but we would not anticipate hefty dividend hikes in the near term.

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