RE:CIBC Top PickFinal Details. GLTA
CIBC World Markets energy infrastructure analyst Robert Catellier named a pair of top picks in the sector for the year:
* Keyera Corp. (KEY-T) with an “outperformer” rating and $35 target. The average is $34.08.
“Keyera is a top pick based on ability to enhance cash returns to shareholders, and substantial potential for catalysts. These include potential projects in support of the DOW ethylene cracker, a potential resolution of the Blueberry River First Nations issue (BRFN) issue, and the strategic implications of the recent increase in capacity in Keyera Fort Saskatchewan. The last two items can help with contracting the remainder of KAPS capacity over time. The company also has limited floating rate debt,” he said.
* Brookfield Infrastructure Partners LP (BIP-N/BIP.UN-T) with an “outperformer” rating and US$46 target. The average is US$43.38.
“Based on excellent inflation protection, limited refinancing needs, and visible FFO per unit growth of 10 per cent from 2022 acquisitions. While having more exposure to foreign currencies, BIP generally hedges OECD currencies for up to 24 months. Risk factors include market volatility and its impact on the ability to transact on M&A, and rising interest rates,” he said.