What the Analysts Say: Enbridge Inc.What the Analysts Say: Enbridge Inc.
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Canaccord Adams analyst Bob Hastings continues to rate the shares of
Enbridge Inc. (TSX-ENB) a buy. His target price of $42.00 remains
unchanged.
Enbridge continues to make progress in the process of gaining
regulatory approval for its Alberta Clipper mainline expansion
project. It recently filed a commercial supplement to its application
to the National Energy Board (NEB) to construct the $2.0 billion
Canadian section of the Alberta Clipper project. The entire $3.1
billion project is to be in service by July 1, 2010.
In Enbridge's latest filing with the NEB, the analyst reports, "The
Canadian Association of Petroleum Producers (CAPP) supports [the]
Canadian section of Alberta Clipper and agrees to financial terms."
This, he says "will smooth the way for NEB approval."
Mr. Hastings says that the announcement was widely anticipated and
that approval of the project therefore will not impact the company's
earnings until closer to 2010.
The analyst also notes that most of Enbridge's project and financing
risk for various current projects will occur over the next two years,
while earnings growth should begin to increase in 2009.
Enbridge Inc. is focused on three core businesses: crude oil and
liquids pipelines, natural gas pipelines, and natural gas
distribution.
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