Enbridge Inc. (NYSE:ENB) (TSE:ENB) has acquired Tri Global Energy for a total consideration of $270 million that includes cash as well as assumed debt.
Based in Canada, Enbridge is an energy infrastructure company that transports crude and other liquid hydrocarbons. The pipeline giant is also engaged in renewable power generation, gas distribution and storage as well as energy marketing services.
TGE is a leading renewable project developer and is the third largest onshore wind developer in the US. Its development portfolio boasts of wind and solar projects of more than 7 GW of renewable generation capacity.
For the coming years, Enbridge is bullish on the renewable power fundamentals in the U.S. based on robust private sector demand for zero carbon electricity as well as higher targets for State renewable portfolio standards.
The addition of TGE’s impressive development pipeline and strong renewable capabilities will bolster Enbridge’s renewable platform and pace up its growth strategy in the U.S.
Over and above the acquisition consideration, Enbridge will pay up to $50 million in payments based on successful execution of TGE’s project portfolio.
What is the Target Price for ENB?
As per TipRanks, Enbridge stock has an average price forecast of $44.50 which implies 18.05% upside potential. The Wall Street community is clearly optimistic about the stock. Overall, the stock commands a Strong Buy consensus rating based on six Buys and two Holds.
Further, ENB stock boasts a score of 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Further, ENB stock has a very positive signal from hedge fund managers, who added 50,900 shares during the last quarter.
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