Enbridge Gets a Buy Rating from Credit Suisse

By Jason Carr

Enbridge (TSX: ENB), the Materials sector company was revisited on June 2, and remains undervalued for at least one analyst on the street. The company received a Buy on June 2 from Credit Suisse’s analyst Andrew Kuske, with a C$70 price target.

According to TipRanks.com, Kuske is a 4-star analyst with an average return of 9.0% and a 82.8% success rate. Kuske covers the Basic Materials sector, focusing on stocks such as Gibson Energy Inc, Pembina Pipeline, and Enbridge Inc.

Currently, the analyst consensus on Enbridge is Strong Buy and the average price target is C$65.71, representing a 24.6% upside.

In a report issued on May 29, RBC Capital also reiterated a Buy rating on the stock with a C$67 price target.

Based on Enbridge’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$10.82 billion and quarterly net profit of C$721 million. In comparison, last year the company earned revenue of C$8.46 billion and had a net profit of C$1.29 billion.

Enbridge, Inc. engages in the provision of gas and oil businesses. It operates through the following segments: Liquid pipelines, gas distribution, gas pipelines processing and energy services, sponsored investments, and corporate. The Liquids Pipelines segment consists of common carrier and contract crude oil, natural gas liquids and refined products pipelines and terminals in Canada and U.S., including Canadian Mainline, Regional Oil Sands System, Southern Lights Pipeline, Spearhead Pipeline, Seaway Crude Pipeline interest and other feeder pipelines. The Gas Distribution segment consists of the company’s natural gas utility operations which serve residential, commercial and industrial customers, primarily in central and eastern Ontario as well as northern New York State. The Gas Pipelines, Processing and Energy Services segment consists of investments in natural gas pipelines, processing and green energy projects, the company’s commodity marketing businesses and international activities. The Sponsored Investments segment includes the company’s ownership interest in Enbridge Energy Partners LP, Alberta Clipper Project and Enbridge Income Fund. The Corporate segment consists of the company’s investment in Noverco, Inc., new business development activities, general corporate investments and financing costs not allocated to the business segments. The company was founded on April 30, 1949 and is headquartered in Calgary, Canada.

The company’s shares closed last Friday at $52.73.