BAY STREET UNDERESTIMATING ENBRIDGE/ SPECTRA: CIBC
Bay Street is likely underestimating the earnings potential of the combined Enbridge Inc. and Spectra Energy Corp. pipeline giant, at least according to one analyst.
CIBC World Markets analyst Robert Catellier said in a Tuesday research note the proxy statement for the $ 37- billion deal indicates there is more upside than analysts expect. He has $71 per share 12- to 18-month price target on Enbridge shares, which closed trading at $56.82 each on Tuesday. He also ranks the company a “sector outperformer.”
Catellier noted that prospective financial information in the prospectus shows 2018 cash flow projections are 18- per- cent higher than what analysts currently expect so “it appears to us that there is a healthy discount between estimates and company projections.”