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Analyst Actions: Credit Suisse "Neutral" on Enbridge; TP at $35

Dividend Raise Tops Expectations. "Enbridge's 2012 earnings guidance was largely in line with the Street's expectations. More important in the current market environment, the 15% dividend increase exceeded the consensus view. Specifically, ENB guided 2012 EPS in a C$1.58-C$1.74 range for a 12% growth rate from the high-end of the 2011 C$1.38-C$1.48 EPS guidance to 2012 mid-point. Of note, the roughly 15% quarterly dividend increase from C$0.245 per share to C$0.2825 is a positive. For perspective, Street 2012 EPS expectations were C$1.638 (in a C$1.56-C$1.70 range) along with quarterly dividend estimates of C$0.2723 (in a C$0.265-C$0.28 range)."

Core Businesses Continue to Boost Growth. "Given our C$1.65 2012 EPS estimate, we do not need to reassess our earnings forecasts at this time. On the other hand, ENB's dividend increase significantly exceeded our C$0.27 expectation. With much of the capital market yearning for yield, we believe the dividend increase will be very well received by the market. In terms of ENB's core businesses, we believe the liquids segment is well positioned to benefit from the delays with the Keystone XL pipeline. Growing volumes with the CTS regime look likely to bias upwards cash flow contributions. ENB's core businesses continues to provide ongoing growth that can be tactically supplemented with selected acquisition activity."

A Core Holding Capable of Sustained Growth. "We believe Enbridge has an attractive and unique asset base capable of sustained growth. In our view, Enbridge may be viewed as a core holding with one of North America's largest infrastructure footprints."

Valuation: "Our ENB target price of C$35.00 and Neutral rating are obtained from multiple valuation approaches, including: a 21.5x P/E multiple; a 3.1% dividend yield; and, an 11.5x EV/EBITDA multiple on 2012e. We reiterate our Neutral rating."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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