Enbridge (and Spectra Energy)
When Enbridge Inc. (NYSE: ENB) and Spectra Energy Inc. (NYSE: SE) merge, they will create the largest energy infrastructure player in North America by enterprise value. 24/7 Wall St. showed definitively that analysts are largely in favor of this combined company. Goldman Sachs raised Enbridge to Buy with a $48 price target. Spectra Energy, the company being acquired, was downgraded to Outperform from Strong Buy with a $44 price target at Raymond James. Enbridge’s American depositary shares were last seen at $44.53, and Spectra Energy shares closed at $42.80 on Friday.
While Callon Petroleum Co. (NYSE: CPE) may have been down on Friday with a weak market, the week brought several positive research notes. Its shares were raised to Outperform from Sector Perform at RBC Capital Markets and its price target was raised to $18 from $15 (versus a $15.46 prior close). The price target was raised at FBR Capital to $19 from $17, and the firm KLR raised its target price to $21 from $18 on the same day. The stock closed down more than 3% at $15.02 on Friday. It has a 52-week trading range of $4.21 to $15.91 and a consensus price target of $16.77.
Wunderlich raised Chesapeake Energy Corp. (NYSE: CHK) to Buy from Hold with a $10 price target (versus a $7.74 close) on September 9. The firm sees Chesapeake as having a better financial position and having maintained strong operations during the oil and gas crash. Additional catalysts were also cited for more upside. Chesapeake shares were down 1.5% at $7.62 on Friday’s close. The consensus price target is $5.45 now, and the 52-week range is $1.50 to $9.55. Keep in mind that this upgrade follows a massive recovery, and we have outlined the driving force pushing its shares higher.
This might not feel like the biggest analyst upgrade in the world. On September 7, Jefferies raised ConocoPhillips (NYSE: COP) to Hold from Sell, and the firm’s price target was lifted to $40 from $37. That was versus a $41.00 prior close, and ConocoPhillips shares ended the week at $42.55. The Jefferies upgrade was a valuation call based on ConocoPhillips being one of the most aggressive cost cutters in the sector, and the firm thinks it can maintain its cash cycle at $49 per barrel in oil. What matters here is that the consensus price target was $52.00 on Friday, a tad higher than in prior weeks. ConocoPhillips had a 52-week range of $31.05 to $57.24.