AI dividend full pricing+North American crude oil pipeline competition intensifies, ENB.US (ENB.US) has been downgraded by analysts one after another

The Zhitong Finance App learned that Raymond James downgraded the rating of Canadian energy infrastructure company ENB.US (ENB.US) from “outperforming the market” to “equal the market”, with a target price of 79 Canadian dollars. However, Raymond James also pointed out that Enqiao continues to promote many high-quality growth projects in an orderly manner.

Raymond James analyst Michael Bass said that several competitive pipeline projects continue to advance, and market concerns about Enbridge's backbone pipeline system have intensified. The pipeline is the largest crude oil transportation channel in North America. It transports about 3 million barrels of crude oil every day and transports Alberta crude oil to the Midwest of the United States and the Gulf Coast.

Bass said, “These alternative competitive pipelines are still in their early stages, but we have some concerns: the main pipeline, as a crude oil capacity adjustment hub, may experience headwinds in the medium to long term if other projects are successfully implemented (we judge that they will probably advance).”

The analyst said that as Western Canada's sedimentary basin exports progress and related policies are adjusted, he is increasingly optimistic about companies that can benefit more directly from these themes.

Since this year, Enqiao's US stock has risen 19%, outperforming the market. Enqiao's stock price has benefited from a surge in electricity demand due to the expansion of data centers. In May of this year, Enbridge announced the development of a large-scale solar and battery energy storage project in Wyoming to support Meta's data center operations. The project includes a 365 megawatt (MW) solar farm and a 200 MW/1600 megawatt-hour (MWh) battery energy storage system (BESS), which uses Tesla's battery technology.

Envision Research, an independent investment analysis team on the Seeking Alpha platform, published an article last month stating that favorable factors related to AI are already reflected in stock prices, so Enqiao's rating was lowered to “hold.”

Overall, Wall Street analysts gave Enqiao US stocks a “holding” rating. The average target price was $56.74, which is 5% higher than the latest closing price.