Q: I've owned AltaGas for several yeras and it's finally coming back up to my ACB. I'm thinking of selling when it hits the even point and moving onto something with more growth.
Do you have any love for ALA? Or would you agree there are more enticing companies in the sector with better growth and income?
Thanks,
Robert
Do you have any love for ALA? Or would you agree there are more enticing companies in the sector with better growth and income?
Thanks,
Robert
5i Research Answer:
We would consider it a 'mediocre' energy infrastructure play, but the stock has done well this year. Lower rates could still push it further. We don't hate it right now but generally prefer ENB or PPL in the sector. It does not have a great record of meeting estimates, but the 3Q results were a nice positive surprise. Certainly if one is seeking growth we think there are better names, but as of today we would consider ALA OK for income.