Q: Hi Team,
Looking at Pembina's recent weakness, is it fair to say that currently it would be a better "buy" today compared to Enb which is riding near highs in terms of potential long term growth? When I look at valuation I am seeing a P/E of 16.85 for PPL and 23.25 for ENB. Also, I am wondering if PPl valuation stays low, if it will be a takeout candidate for ENB some day? Market cap of PPl is only 30 billion compared to 137B for ENB. PPL has some valuable assets, including LNG plant currently under construction. Dividends are fairly similar with enb slightly higher at the moment. Thoughts?
Shane.
Looking at Pembina's recent weakness, is it fair to say that currently it would be a better "buy" today compared to Enb which is riding near highs in terms of potential long term growth? When I look at valuation I am seeing a P/E of 16.85 for PPL and 23.25 for ENB. Also, I am wondering if PPl valuation stays low, if it will be a takeout candidate for ENB some day? Market cap of PPl is only 30 billion compared to 137B for ENB. PPL has some valuable assets, including LNG plant currently under construction. Dividends are fairly similar with enb slightly higher at the moment. Thoughts?
Shane.
5i Research Answer:
We doubt PPL would be willing to discuss a takeover at current levels. A deal is never beyond...