Wells sees 'compelling entry point' for Enbridge, upgrades to Outperform
Wells Fargo analyst Praneeth Satish last night upgraded Enbridge to Outperform from Market Perform and raised his price target for the shares to C$55 from C$54. Enbridge has eliminated funding concerns with asset sales and is now on a path to equity self-funding its entire five-year secured capex backlog, Satish tells investors in a research note. Further, rather than being a headwind, Mainline re-contracting is now a potential catalyst given an acute lack of pipeline takeaway capacity, says the analyst. In addition, Line 3 uncertainty is mostly eliminated following the Minnesota PUC's approval of the project, Satish adds. He believes the recent underperformance of the shares creates a "compelling entry point."