TSX:PPL - Post Discussion
Post by
ace1mccoy on May 18, 2022 8:45am
Scotia Picks The "Go -To" Names.
| | | | Scotiabank Says Median Q1 Results For Canadian Utilities, Energy Companies Beat Estimates; Picks Keyera and Pembina As Go-To Names | | 2022-05-18 08:37:35 AM ET (MT Newswires) | | | |
| | | 08:37 AM EDT, 05/18/2022 (MT Newswires) -- Scotiabank said Wednesday that median first-quarter results for Canadian utilities and energy infrastructure companies were 4% ahead of its estimates and consensus.
Given this strength, Scotiabank said it has seen median consensus estimates increase not only for 2022, but also for 2023 and 2024.
Scotiabank picked Keyera Corp. (KEY.TO) and Pembina Pipeline Corp. (PPL.TO) as its go-to names in the midstream subsector, citing the strong energy price environment and potential for oil/ gas volume growth.
Both companies raised their 2022 guidance outlook on the back of stronger marketing conditions.
"To say financial markets are volatile currently is an understatement - but over the last month, the majority of our coverage group has generally outperformed the market," Scotiabank said.
"The more energy exposed pipeline and midstream group are benefiting from the strong energy price environment through higher volumes, increased longer term growth expectations, and in certain instances, strong marketing contributions. Investors have again turned to the utility group for defense, and we have seen renewed investor interest." | | | |
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