ENB:CC - Enbridge: A Safe Bond Substitute But Not Much More (Upgrade)
2024-02-14 14:18:24 ET
Summary
- Enbridge's base business, particularly the Liquids Pipelines and Gas Transmission, is solid but slow growing.
- Enbridge's acquisition of three US-based natural gas distribution utilities will have minimal impact on discounted cash flow per share.
- With its low growth, Enbridge common stock will trade like a bond, helped more by declining interest rates than earnings growth expectations.
- Enbridge common stock is upgraded to a Hold rating due to the expectations for lower rates ahead.
- The US dollar-denominated Series 1 and 5 preferred shares are higher in the capital structure and remain a Buy.
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Note: All dollar values mentioned are in Canadian dollars unless specifically indicated otherwise. ...
Enbridge: A Safe Bond Substitute But Not Much More (Upgrade)