EBBNF - Enbridge: Set For EBITDA Growth Acceleration
2025-01-10 07:57:28 ET
Summary
- Leadership changes in the US and Canada can help boost volume-led growth as the O&G sector gets more encouraged to increase production.
- Enbridge's deal with Alberta's government to double O&G production can accelerate Enbridge's Liquid Pipelines EBITDA growth.
- January winter seasonality is good for ENB as this month tops on both win rate and average return metrics.
- ENB is trading at a lower than usual premium vs the sector, making the buys acceptable given the bullish fundamental context.
- Relative technicals show increasing bullish strength vs. the S&P500, poising ENB to outperform.
Thesis
I am bullish on Enbridge ( ENB ) ( ENB:CA ):
- Leadership changes in the US and Canada can help boost volume-led growth
- Alberta deal can boost Enbridge's EBITDA growth from its liquids business
- January winter seasonality is good for ENB
- ENB is trading at a lower than usual premium vs the sector
- Relative technicals show increasing bullish strength
- EBITDA expectations upgrades is a key catalyst monitorable