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Stock Opinions by Varun Anand

COMMENT
Definition of infrastructure. He embraces a broad definition of infrastructure, including electricity generators, renewable power sellers, pipelines. Assets that provide essential daily services to a majority of the population in a supply constrained manner. Hits the classical industrials, energy, utilities, but also data centres, cell towers, renewable energy, air cargo, and transports. These all fit the bill in terms of the business model and cashflow sustainability.
Unknown
COMMENT
Impact of low interest rates on infrastructure stocks. Wind in their sails for now, and the key phrase is "for now". We won't have low interest rates forever. We saw how when rates spiked earlier this year, valuations compressed across the board. Look at how durable the business is and see how higher rates would impact cashflow and growth. Even if rates do climb higher from here, he feels that there's tremendous value in a number of infrastructure companies today.
Unknown
COMMENT
US infrastructure bill. It's difficult to time anything in Washington, and there have been some changes, but the core of the bill is still infrastructure-driven. A lot of money is being allocated to highways, roads, airports, renewables, power generation, and so on. Of all the sectors that will benefit from stimulus, infrastructure is at the forefront, in the US and globally. Time to take a fresh look at infrastructure stocks, as they have multiple years of growth ahead.
Unknown
WEAK BUY

Pretty good quality renewable portfolio. Steady dividend growth, healthy yield of 4.5%. Still upside. Likes it. Trades at a bit of a premium to AY, his preference, which has a more diverse geographic footprint in more ESG-friendly projects.

Energy Infrastructure, Industrials & Utilities
BUY

His preference in the renewable space. Diverse geographic footprint in ESG-friendly projects. Trades at a lower valuation than RNW.

Utilities
COMMENT
Selloff in renewables. The selloff was violent and overdone. To be fair, the names had run too high before the selloff. A lot of renewables have come back to the middle ground. A good opportunity to invest and get good risk-adjusted returns.
Unknown
BUY
Big fan. If you're a long-term investor, still tremendous opportunity. Growth pipeline of double EBITDA is not reflected in the valuation. Short term, it could be choppy. Long term, excellent name to own, One of the leaders in offshore wind, robust track record of execution.
Utilities
COMMENT
Energy from nature is unpredictable. Wind and sun are unpredictable. You're going to have ebbs and flows. He looks at assumptions made by management in terms of capacity and production. Some management teams are very aggressive in their expectations, and his team gives a haircut to these numbers.
Unknown
COMMENT
Higher input costs curb profit margins? No, because they procure equipment well ahead, even by years, of when the assets go live. They negotiate clauses to insulate them from massive spikes in equipment costs. Plus, they can pass extra costs through. You might run into more trouble if you're an equipment manufacturer.
Unknown
BUY

Really likes it. Best performing on the TSX this year, second only to IPL. 2020 was a banner year. Pioneer Pipeline sale approved, and proceeds will be used to pay down debt. Helped by commodity cycle. Lucrative project pipeline. He cautions that it is energy and a small cap, so will be volatile. Long term, investors will be rewarded.

0
WEAK BUY

TRP vs. ENB vs. PPL Likes it. Trading below pre-Covid highs, as it's viewed as more defensive. Keystone XL announcement was initially negative, but a relief going forward. Not starved for growth. Lots of capex in development. Market will continue to rerate the stock. He prefers ENB, as its valuation is still at a modest discount, Line 5 is mostly resolved. TRP, PPL, and ENB are all high quality companies that you can't go wrong owning. But ENB is his pick of the three.

oil / gas pipelines
BUY

ENB vs. TRP vs. PPL Likes TRP. Trading below pre-Covid highs, as it's viewed as more defensive. Keystone XL announcement was initially negative, but a relief going forward. Not starved for growth. Lots of capex in development. Market will continue to rerate the stock. He prefers ENB, as its valuation is still at a modest discount, Line 5 is mostly resolved. TRP, PPL, and ENB are all high quality companies that you can't go wrong owning. But ENB is his pick of the three.

oil / gas pipelines
WEAK BUY

PPL vs. ENB vs. TRP TRP, PPL, and ENB are all high quality companies that you can't go wrong owning. He prefers ENB, as its valuation is still at a modest discount, Line 5 is mostly resolved.

pipelines
HOLD

In the midst of a bidding war. More of a hold than a buy. Prospects for material upside are not very high. Better opportunities elsewhere. If you made profits, take some and invest in something like GEI or even TWM, if you have a higher risk tolerance.

oil pipelines
WEAK BUY
Pulled back, caught up in the renewable selloff. Flagship project in Nicaragua continues to deliver steady cashflow growth. Expanding into Panama. Trading at a 50% discount to other renewables. Great company for the long term. Caution: elections in Nicaragua could have a positive or negative impact, depending how peaceful they are.
INDUSTRIAL PRODUCTS
Showing 1 to 15 of 194 entries