Zacks Investment Research Upgrades Enbridge (ENB) to Buy

Zacks Investment Research upgraded shares of Enbridge (NYSE:ENB) (TSE:ENB) from a hold rating to a buy rating in a report issued on Monday morning. Zacks Investment Research currently has $38.00 target price on the pipeline company’s stock.

According to Zacks, “Enbridge has the longest and most sophisticated crude and liquids pipeline system in the world that spreads over 17,018 miles. We appreciate the merger with Spectra Energy as it has made Enbridge the largest North American energy infrastructure player. Enbridge’s huge backlog of growth projects that stands at about C$22 billion along with the C$12 billion worth midstream projects that are online will help it drive dividend by 10% annually through 2020. Moreover, Enbridge’s decision to purchase all of the outstanding stocks of three North American units — Enbridge Energy Partners, Enbridge Energy Management and Enbridge Income Fund Holdings — for about $7.1 billion is likely to be a prudent move for expanding investment appeal and attracting premium valuation. By transferring all the sponsored vehicles under a single roof, the company can considerably lower the complexity of the organizational structure and financial reporting.”

A number of other equities analysts have also issued reports on ENB. ValuEngine raised Enbridge from a sell rating to a hold rating in a report on Tuesday, October 2nd. Morgan Stanley raised their price objective on shares of Enbridge from $34.00 to $37.00 and gave the company an equal weight rating in a research report on Friday, July 13th. BMO Capital Markets reduced their price objective on shares of Enbridge from $61.00 to $59.00 and set an outperform rating for the company in a research report on Thursday, June 14th. UBS Group started coverage on shares of Enbridge in a research report on Thursday, October 4th. They issued a buy rating for the company. Finally, Citigroup restated a neutral rating on shares of Enbridge in a research report on Monday, September 24th. Five research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $49.17.

NYSE ENB opened at $33.70 on Monday. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.47 and a current ratio of 0.56. Enbridge has a 52-week low of $29.00 and a 52-week high of $41.75. The stock has a market cap of $55.39 billion, a P/E ratio of 21.82, a P/E/G ratio of 1.71 and a beta of 0.55.

Enbridge (NYSE:ENB) (TSE:ENB) last released its quarterly earnings results on Friday, August 3rd. The pipeline company reported $0.62 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.42 by $0.20. Enbridge had a return on equity of 8.47% and a net margin of 5.99%. The firm had revenue of $8.33 billion for the quarter, compared to analyst estimates of $9.86 billion. Analysts predict that Enbridge will post 2.1 earnings per share for the current fiscal year.

A number of large investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP lifted its position in shares of Enbridge by 2.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 784,084 shares of the pipeline company’s stock valued at $24,675,000 after acquiring an additional 15,187 shares during the period. Sei Investments Co. lifted its position in shares of Enbridge by 5.1% during the 1st quarter. Sei Investments Co. now owns 232,241 shares of the pipeline company’s stock valued at $7,308,000 after acquiring an additional 11,249 shares during the period. Baird Financial Group Inc. lifted its position in shares of Enbridge by 29.8% during the 1st quarter. Baird Financial Group Inc. now owns 112,686 shares of the pipeline company’s stock valued at $3,546,000 after acquiring an additional 25,842 shares during the period. Commonwealth Equity Services LLC lifted its position in shares of Enbridge by 5.7% during the 1st quarter. Commonwealth Equity Services LLC now owns 260,849 shares of the pipeline company’s stock valued at $8,208,000 after acquiring an additional 14,050 shares during the period. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its position in shares of Enbridge by 0.9% during the 1st quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 265,728 shares of the pipeline company’s stock valued at $6,486,000 after acquiring an additional 2,500 shares during the period. Hedge funds and other institutional investors own 58.53% of the company’s stock.

About Enbridge

Enbridge Inc operates as an energy infrastructure company in Canada and the United States. The company operates in five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Green Power and Transmission, and Energy Services. The Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals.

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