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Enbridge and TC Energy: Which Stock Do Analysts Recommend?

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Analysts’ recommendations

Around 92% of the analysts surveyed by Reuters covering Enbridge (ENB) rated it as a “buy” or a “strong buy.” In comparison, 75% of the surveyed analysts rated TC Energy (TRP) as a “buy” or a “strong buy.” For Enbridge, 8% of the analysts rated the stock as a “hold,” while none of the analysts rated it as a “sell.” In comparison, 20% of the analysts rated TC Energy as a “hold,” while 5% rated it as a “sell.” On May 29, RBC raised its target price for TC Energy from 71 Canadian dollars to 75 Canadian dollars.

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Upside potential

The mean target price for Enbridge is 53.8 Canadian dollars. The target price implies an upside potential of ~8% from Enbridge’s current price. TC Energy’s mean target price of 65.6 Canadian dollars implies an upside potential of ~4% from its current price.

More analysts recommend Enbridge as a “buy” than TC Energy. Enbridge also offers higher upside potential than TC Energy based on analysts’ mean target price. Currently, Enbridge is trading at a higher yield that TC Energy. While both of the stocks look strong in terms of the earnings and dividend growth, Enbridge seems to have a slight edge over TC Energy as an investment option. Read Does Magellan Midstream Partners’ 6.5% Yield Look Attractive? to learn about another stock with an attractive yield. To learn about the world’s largest oil companies, read What You Need to Know about the World’s Largest Oil Companies.

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