Deutsche Bank Starts Spectra Energy (SE) at Hold

Deutsche Bank initiated coverage on Spectra Energy (NYSE: SE) with a Hold rating and a price target of $32.00.

Analyst Kristina Kazarian said, "SE is the parent c-corp of the entire complex with direct and indirect interests in two subordinated partnerships as well as substantial entity-level operations throughout Canada. Stable cash flows, a large and very realizable organic growth backlog, and low contract risk leave SE well-positioned to execute on its planned 8% dividend growth rate through 2018 while maintaining above average coverage. While we like SE’s stable and advantaged business model, with shares already up +23% YTD (AMZ -17%, S&P -8%), most of the benefit appears to have already been priced in, especially vs. other c-corp peers. Our valuation uses a 5.5% yield on CY17 DPS of $1.80, 11.5x target EV/EBITDA, and a ten-year DDM."

For an analyst ratings summary and ratings history on Spectra Energy click here. For more ratings news on Spectra Energy click here.

Shares of Spectra Energy closed at $29.52 yesterday.

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