The Globe and Mail reports in its Tuesday, May 13, edition that Burkett Asset Management manager Kevin Burkett recommends buying Enbridge. The Globe's Brenda Bouw writes that Mr. Burkett bought the Calgary-based pipeline company in late February for $61.24 a share. Mr. Burkett believes Enbridge is in a good position to deliver stable growth through the current business cycle. Enbridge operates long-term, fee-based contracts, which lowers cash-flow sensitivity to commodity price fluctuation.
When you think about the impact of energy tariffs, it comes mostly at the cost of the shipper, as a result, Mr. Burkett does not see exposure in pipelines to tariffs on cross-border energy flows. Enbridge's footprint across North America offers a competitive advantage. The Globe reported on Jan. 7 that Barclays rated Enbridge "equal weight." It was then worth $61.61. The Globe reported on Feb. 19 that RBC had reiterated its "outperform" recommendation for Enbridge, when it could be had for $60.64. The Globe reported on April 4 that Citi analyst Spiro Dounis began coverage on Enbridge with a "buy" recommendation. The shares could then be had for $61.74.
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