The Globe and Mail reports in its Thursday, Nov. 20, edition that Credit Suisse analyst Andrew
Kuske upgraded his ratings on
four infrastructure stocks to "outperform"
from "neutral," believing
that dividend growth is not
yet fully priced into their share
prices. The Globe's Darcy Keith, Tim Shufelt, Jody White and Sean Silcoff write in the Eye On Equities column that Brookfield Infrastructure
Partners, Enbridge, Fortis
and TransCanada were
all given "outperform" ratings.
Mr. Kuske raised targets on
each: Brookfield to $46 (U.S.)
from $42, Enbridge to $70 (Canadian)
from $52 (Canadian), Fortis to $44 (Canadian) from
$32 (Canadian) and TransCanada to $68 (Canadian) from
$58 (Canadian). Mr. Kuske says, "The current low interest rate environment has resulted in valuation extremes in a historical context for certain yield-related entities." As a result, Mr. Kuske says investors should discern between "fixed income proxies that may be at the most risk in a rising rate environment versus stocks with attractively priced dividend growth potential." The analyst also increased his target price on Emera to $44 (Canadian) from $40 (Canadian) and maintained an "outperform" rating.
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