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