Brookfield Infrastructure Partners LP BIP

CIBC

[retiredcf]

CIBC Capital Markets analyst Robert Catellier weighed in on the yield-heavy energy infrastructure/power and utilities sectors,

“Questions on potential rate cuts and economic stability likely mean some allocation in utilities makes sense. While some firms are working to cure weaker balance sheets, it seems the market is still shunning turnaround stories (quality could continue to prevail). Despite better results, improving fundamental outlooks and intriguing value, Renewables stocks struggle to inflect higher … Improving organic growth prospects and solid financial positions have us favouring midstreamers like PPL [Pembina Pipeline] over larger-cap pipelines with funding requirements … Rate cuts/lower yields (and fewer negative headlines on clean energy) are needed to reinvigorate investor interest [in renewables]. BLX [Boralex] , BEP [Brookfield Renewable Partners] and NPI [Northland Power] are preferred names … ACO.X [Atco Ltd.], BIP [Brookfield Infrastructure Partners] and SPB [ Superior Plus] are our Outperformer-rated names [in utilities] … [in midstream/pipelines] results were generally in line with expectations (2 per cent below consensus, on average; six beats and two misses) given strong core infrastructure performance and marketing strength. KEY [Keyera Corp.] posted a notable beat on the back of strong marketing performance and record G&P and Liquids margins, and TRP [TC Energy] beat due to a milestone payment on CGL”