RBC Capital Markets says Enbridge’s investor day, scheduled for Dec. 7, seems likely to feature an outlook for balanced capital allocation in 2022; Raises PT to C$61 from C$57.
Says it expects share buybacks to feature in the plan for 2022, possibly with a buyback target of $500 million to $1.0 bln, particularly if Enbridge decides to moderate its dividend growth.
Enbridge stated at its 2020 Enbridge Day event that it saw minimal room in its budget to consider share repurchases in 2021, which made sense given the priority was the construction of Line 3 replacement project- brokerage. Says it thinks Enbridge now has the financial capacity to pursue repurchases.
ENB reported a rise in third-quarter profit on Friday, helped by rising demand for oil and gas that boosted pipeline volumes.