Incitec Pivot Ltd T.IPL

Credit Suisse

[Dibah420]

11:14 AM EST, 12/11/2020 (MT Newswires) -- Credit Suisse on Friday reiterated its underperform rating on the shares of Inter Pipeline (IPL.TO) with a C$13.50 target price after the midstream oil and gas pipeline and processing company released its 2021 spending plans.

"In the financial budgeting season, Inter Pipeline Ltd. (IPL) outlined a 2021 capex of C$1bn that, on an adjusted basis, exceeded our expectations - although not in a negative fashion," the investment bank said in a research note. "Our IPL views include a partial Heartland Petrochemical Complex (HPC) sale in 2021 and, as a result, a truly comparable number adjusts for that variable. Most notably and positively for IPL, the capital associated with HPC looks to be in line with past guidance. The extra capital versus our numbers and, we expect the Street (C$875m) looks to be focused partly on timing and new opportunities for small capital growth projects in the NGL segment (cavern work at the Redwater Olefinic Fractionator). In our view, HPC capital being consistent with past figures and continued language regarding the PDH side being mechanically complete by May 2021 and the PP by end of 2021 are near-term positives for the stock's sentiment. Most importantly, there was no meaningful HPC capital increase that was anticipated by some (for clarity, that is not our core assumption)."