Enbridge resumed with a Sector Perform at Scotiabank

Scotiabank analyst Robert Hope resumed coverage of Enbridge with a Sector Perform rating with a price target of C$52, down from C$54, following the $4.6B common equity offering to partially fund the acquisition of three natural gas distribution utilities from Dominion Energy. The analyst has a positive view of the transaction, saying “it checks many boxes.” However, the upfront equity financing is dilutive to 2023 and 2024 estimates, the analyst tells investors in a research note.