Scotiabank Scotiabank analyst Robert Hope outlined the financial results and top picks in the yield-heavy energy infrastructure sector,
“Overall, Q3 results were ahead of our expectations, and post-results, share price reactions were muted aside from BIP [Brookfield Infrastructure Partners] and TWM [Tidewater Midstream and Infrastructure Ltd.] . Following the quarter, we saw consensus estimates move up the most for PPL [ Pembina Pipeline], ACO [Atco], and KEY [Keyera], and down the most for TWM and AQN [Algonquin]. So far in Q4, we have seen the Canadian 10-year bond yield decrease by ~20 bps and the Canadian dollar continues to weaken, which are largely tailwinds for our coverage universe. Specifically, we have seen the utilities outperform quarter-to-date and the pipeline / midstream groups are also benefiting. On the other hand, sentiment on renewable power names continues to be tepid. Our overall favourite names are ALA [Altagas], KEY, and TRP [TC Energy Corp].”