Analysts’ mean recommendation for Enbridge Inc.’s (ENB) stands at 2.40.
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The deal is a merger, but make no mistake here about the size differential. Finally, Zacks Investment Research raised shares of Enbridge from a “hold” rating to a “buy” rating and set a $46.00 price target for the company in a research report on Tuesday, May 17th. In what would be the largest-ever foreign purchase by a Canadian company, the combination will create the biggest energy pipeline and storage operator in North America. According to multiple reports, this is now the going to be the largest entity in North America for infrastructure.
Spectra shareholders will get Enbridge shares valued at about $40.33 each, a premium of about 11.5% from Spectra’s closing price Friday.
“We’ll be the FedEx” of the pipeline business, Greg Ebel, Houston-based Spectra’s chief executive officer, said in an interview. The stock price of firm is moving up from its 20 days moving average with 2.44% and remote isolated positively from 50 days moving average with 4.21%.
The Relative Volume of the company is 15.94 and Average Volume (3 months) is 4.9 million.
Some of the price targets were made in Canadian dollars because of Enbridge being in Canada, and the firms are mostly Canadian. He will work closely with Paine & Partners to identify new investment opportunities in the sector and serve in a leadership role at attained companies. Canaccord Genuity lifted their price objective on Enbridge from C$57.00 to C$60.00 and gave the company a “buy” rating in a report on Wednesday.
Credit Suisse Securities (Canada) and RBC Capital Markets were Enbridge’s financial advisers, while Sullivan & Cromwell LLP and McCarthy Tétrault LLP were its legal advisers.
On 18 August, research firm Morgan Stanley downgraded the company’s stock rating from “equal weight” to “underweight”.
This is a mega-merger for energy infrastructure in North America. Atlantic-Gulf segment includes its interstate natural gas pipeline Transcontinental Gas Pipeline Company LLC (Transco) and natural gas gathering and processing and crude oil production handling and transportation. Raymond James lowered its rating to Outperform from Strong Buy – which hardly seems like a slap in the face.
06/16/2014 – Southcross Energy Partners, L.P. was upgraded to “neutral” by analysts at Goldman Sachs.
In case of Revenue Estimates, 5 analysts have provided their consensus Average Revenue Estimates for Spectra Energy Corp as 1.21 Billion. The Transaction was unanimously approved by the Boards of Directors of both companies and is expected to close in the first quarter of 2017, subject to shareholder and certain regulatory approvals, and other customary conditions. “For us, strategically it’s a check for us to move forward with the gas business”. However, we continue to view SEP’s near-term prospects as stable given the highly planned nature of the projects and their likely associated cashflow contributions…
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The merged company brings a low-risk commercial structure with stable long-term cash flow, as 96% of pro-forma free cash flow is underpinned by long-term commercial agreements (cost-of-service, take-or-pay, of fixed fee); 93% of customers are investment grade or equivalent counterparties; and less than 5% of combined pro-forma cash flow will have direct exposure to commodity price risk.
