Why analysts see upside to Enbridge stock, what Rosenberg Research sees as a post-Iran-war winner and more from The Week in Stocks. 

Stock of the week: Rogers Communications Inc.

Shares of

Rogers Communications Inc.

(RCI/B:TSX) have been on a rollercoaster over the past few weeks falling 15 per cent as investors bailed from the stock, spooked by a telecom wireless price war, only for the shares to regain some lost ground on earnings that matched estimates. In the wake of all that, TD Cowen analyst Vince Valentini hiked his price target for Rogers post-earnings to $60 from $56 and upgraded his rating to a buy from a hold, calling the negative sentiment around the stock “excessive” and adding in a note on Wednesday that “we believe that the market continues to underestimate both the value of the company’s sports assets and the potential timing of their monetization. Shares closed Friday at $49.26. Valentini expects a deal to go ahead to buy a 25 per cent stake of Maple Leaf Sports and Entertainment (MLSE) from Kilmer Sports Inc., though he said the transaction could take place later than expected. On the wireless front, the TD analyst said the telcos have received the message that the price wars were “destructive and unacceptable.” The analyst highlighted four catalysts for the Rogers shares, including ongoing debt reduction to bring levels to those of peers, more savings from the purchase of Shaw Communications Inc., further “non-core” asset sales and more information on monetizing MLSE. Desjardins Capital Markets analyst Jerome Dubreuil also hiked his price target to $59 from $54.50, citing as a “clear positive” the significant reduction in capital spending. However, Desjardins thought markets would react more positively than they did to the spending cuts, he said. Rogers’ 12-month target price, based on the calls of 17 analysts, is $59.25, according to Bloomberg.

Keeping score

 

Rosenberg Research on what may be a big winner after the Iran war

“Alternative energy will be a big winner of the U.S.-Israel-Iran war,”

David Rosenberg

, president of Rosenberg Research and Associates Inc., said in note, adding that the backlash against the

clean-energy

sector is starting to unwind as the conflict reconfirms energy security as a top global priority. “Investors should continue to manage geopolitical risk at the portfolio level, rather than trading too quickly,” Rosenberg said. Investing opportunities in the renewables space go beyond energy generation to include batteries, grid modernization and energy storage, while commodities linked to alternative energy run from copper, uranium, lithium and nickel to rare earths. Here is a list of

exchange-traded funds

(ETFs) Rosenberg is suggesting investors can tap to get into the sector: iShares Energy Storage and Materials ETF (IBAT), iShares Global Clean Energy ETF (ICLN), Global X Copper Miners ETF (COPX), Evolve Global Materials and Mining Enhanced Yield ETF (BASE), Global X Copper Producer Equity Covered Call ETF (CPCC), VanEck Rare Earth and Strategic Metals ETF (REMX) and Global X Uranium ETF (URA). Since the start of the war, the ICLN ETF is up nearly 10 per cent. “For investors, renewable energy will increasingly be both a source of diversified return and a hedge in portfolio construction,” Rosenberg said.

Enbridge upside seen on U.S. permits, natural gas infrastructure development

Shares of

Enbridge Inc.

(ENB:TSX) got a boost on Friday when the federal government announced it had approved the $4 billion expansion of the company’s Westcoast pipeline system, adding “up to 300 million cubic feet per day of additional transportation capacity on B.C.’s major natural gas transmission system. Construction is slated to begin this summer, subject to addressing environmental, safety and Indigenous engagement concerns. Shares of Enbridge have slumped through April, but are up 10 per cent year to date and rose slightly on the news, closing Friday at $72.86. The 12-month consensus price target on the shares based on 23 analysts is $76.15, a level they hit late last month. Some analysts see more upside, though their calls don’t relate to the announced expansion. UBS Research analyst Manav Gupta has a price target of $85 on the shares, due to permits recently approved by the United States that Gupta said are critical to Enbridge’s Main Line Optimization plan. Enbridge’s Main Line moves

crude oil from western Canada into the U.S. Veritas Investment Research analyst Darryl McCoubrey has a price target of $82

“largely due to favourable market conditions for North American natural gas infrastructure development

,” he said in a note on Friday.

Price target hikes, cuts and holds

  • BMO Capital Markets analyst John Gibson hiked his price target for Mullen Group Ltd. (MTL:TSX) to $23 from $20 on earnings that met expectations and strong freight demand. Shares closed Friday at $19.95.
  • CIBC Capital Markets analyst Robert Catellier hiked his price target for TC Energy Corp. (TRP:TSX) to $89 from $85 on higher-than-expected returns for “key” projects that have started operating or have approval. Shares closed Friday at $84.79.
  • TD Cowen analyst Michael Van Aelst cut his price target for Metro Inc. (MRU:TSX) to $106 from $113 on “noisy” quarterly results with the disturbance likely to continue due to a distribution centre strike in Quebec. Shares closed Friday at $91.09.
  • National Bank of Canada Capital Markets analyst Gabriel Dechaine hiked his price target for Sun Life Financial Inc. (SLF:TSX) to $109 from $99 and boosted its rating to outperform from perform on a turnaround in its U.S. business. Shares closed Friday at $97.74.
  • Raymond James analyst Steve Hansen hiked his price target for Canadian National Railway Co. (CNR:TSX) to $170 from $162 on better-than-expected traffic growth in grains and potash and an improving freight outlook in the U.S. Shares closed Friday at $156.71.
  • Raymond James analyst Craig Stanley hiked his price target for Torex Gold Resources Inc. (TXG:TSX) to $88 from $85 on updated estimates for the company’s Morelos Complex in Guerrero, Mexico. Shares closed Friday at $61.15.
  • This TSX stock soared over 400% with help from Nvidia. Where will it go from here?
  • This TSX oilsands major could jump as much as 20% on the Iran war and Strait of Hormuz crisis, analyst says

Every week, the Financial Post breaks down the most interesting developments in the week’s world of investing, from top performers to surprising analyst calls and stocks to have on your radar.

Are you an investor looking for stock ideas and market insight? Sign up for the weekly FP Investor Newsletter here to get the best of the Financial Post’s investing news, analysis and expert commentary straight to your inbox.

• Email: gmvsuhanic@postmedia.com