Monday, November 1, 2010

Has Enbridge Energy (NYSE:EEP) Finally Turned the Corner?

After reputation problems results from the pipeline spills, Barclays (NYSE:BCS) sees Enbridge Energy Partners (NYSE:EEP) as having turned the corner, maintaining their "Equalweight" on them while raising the price target.

Barclays said, "Turning the corner following pipeline spills. Combining better-than-expected 3Q results, a restart of Lines 6A and 6B, expected accretion from the Elk City acquisition and reaffirmation of distribution growth guidance, we feel EEP has turned the corner following the pipeline spills. While EEP will likely have a few messy accounting quarters and higher '11 maintenance capex, the spill overhang is largely removed, in our opinion."

Since the middle of September Enbridge has rebounded in share price nicely.

They closed Friday at $61.49, dropping $0.09, or 0.15 percent. Barclays raised their price target from $58 to $62 on Enbridge.

For earnings per share, that was adjusted for FY11 EPS from $2.72 to $2.92 and FY12 from $3.00 to $3.05.

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