TD Cowen says natgas optimism fuels midstream valuations, supply concerns linger

Enbridge

17/10/2025 11:16

** TD Cowen says market continues to reward North American midstream growth, evidenced by expanding core profit multiples alongside increasing capex budgets

** Adds that investors are differentiating between optimism on natgas, demand-pull growth and caution on supply-push growth

** TD Cowen adds that Canadian midstream valuations are above 10-year average on near-term catalysts, long-term growth, and attractive yields; U.S. natgas levered names are also above average

** "Limited market access can have meaningfully negatively consequences for Canadian producers, and we believe that Canadian midstream is much better positioned with supply push leverage as a consequence," - brokerage

** For Q3 earnings, brokerage is constructive on TC Energy TRP.TO, Cheniere Energy LNG.N and bearish on Enterprise Products Partners EPD.N

TD Cowen changes price target on the following companies:

Company
New PT
Old PT
% upside to stock's last close
Enbridge ENB.TO
C$70
C$69
5.5%
Energy Transfer ET.N
$20
$22
20%
ONEOK OKE.N
$78
$87
16%
Pembina Pipeline Corp PPL.TO
C$66
C$64
23.8%
Williams Companies WMB.N
$69
$67
10.4%

 (Reporting by Pooja Menon in Bengaluru)

 ((Pooja.Menon@thomsonreuters.com;))