Enbridge fell 5.9%
On March 4, Enbridge (ENB) fell 5.9% due to the expected delay in its Line 3 Replacement project. On March 1, the company announced that the replacement project could be delayed by roughly a year due to a delay in the permits from Minnesota. Analysts’ downgrades following the announcement likely contributed to the stock’s fall.
Following Enbridge’s announcement about the delay in the Line 3 Replacement project, National Bank Financial and Scotiabank downgraded the stock from “outperform” to “sector perform.” Evercore ISI Group downgraded the stock from “outperform” to “in-line.” BMO cut its target price for Enbridge from 59 Canadian dollars to 57 Canadian dollars.
The above graph shows how analysts’ recommendations for Enbridge have changed in the past year. Among the 19 Reuters-surveyed analysts covering Enbridge, three recommended a “strong buy,” nine recommended a “buy,” and seven recommended a “hold.”
Enbridge’s target price
The mean target price for Enbridge is 53.2 Canadian dollars, which implies an upside potential of ~14% from its current price.
With the fall on March 4, Enbridge stock has fallen close to its 50-day moving average level. The level might act as a support for the stock in the near term.
Among Enbridge’s peers, 68% of the analysts recommended TransCanada (TRP) as a “buy,” 90% of the analysts recommended Kinder Morgan (KMI) as a “buy,” and 89% of the analysts recommended Energy Transfer (ET) as a “buy.”
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