On Thursday, RBC Capital Markets released a comprehensive note detailing their "Best Ideas" across various sectors within the global power, utilities, and infrastructure landscape. PG&E Corp. (NYSE:PCG) stands out with a price target (PT) of $24 and an "Outperform" rating in the U.S. Power & Utilities category.
In the Canadian Power & Utilities sector, AltaGas Ltd . (TSX:ALA) is highlighted with a PT of CAD 40, alongside Emera Incorporated (TSX:TSX:EMA) and TransAlta (NYSE:TAC) Corporation (TSX:TA; NYSE:TAC) with PTs of CAD 60 and CAD 16, respectively, all maintaining an "Outperform" stance.
European selections include SSE plc (LON:LON:SSE), EDP Renovaveis S.A. (LIS:ELI:EDPR), and Redeia Corporacion S.A. (MADRID:RED), with PTs of GBp 2075, EUR 15, and EUR 20.50, each also rated "Outperform."
The U.S. Midstream sector's top picks are Energy Transfer LP (NYSE:NYSE:ET) and Williams Companies, Inc (NYSE:NYSE:WMB), with the latter seeing a price target increase to $62 from $60, both recommended as "Outperform." Energy Transfer, with a market capitalization of $65.94 billion, has demonstrated strong performance with a 50.65% year-to-date return and maintains an attractive 6.73% dividend yield.
InvestingPro analysis reveals 13 additional valuable insights about ET's financial health and market position. Canadian Midstream favorites are Pembina Pipeline (NYSE:PBA) Corporation (TSX:PPL (NYSE:PPL); NYSE:PBA) and Gibson Energy Inc . (TSX:TSX:GEI), with price targets of CAD 65 and CAD 28, respectively, and both also carrying an "Outperform" rating.
North American Renewable Developers have Brookfield Renewable (NYSE:BEP) and Northland Power (OTC:NPIFF) (TSX:NPI) as the best ideas, with PTs of $31 and CAD 28, and both tagged as "Outperform." In the Clean Energy space, First Solar, Inc. (NASDAQ:FSLR) and Sunrun Inc . (NASDAQ:RUN) are the chosen ones with PTs of $280 and $17, respectively, and an "Outperform" rating.
Rounding out the selections, European Transport Infrastructure recommendations include Eiffage (EPA:FOUG) (NXT PA:FGR) and Vinci (EPA:SGEF) (NXT PA:DG), with PTs of EUR 125 and EUR 130, both rated "Outperform." In the Australian Transport Infrastructure category, Auckland International Airport (ASX:AIA; NZE:AIA) is the top pick with a PT of NZD 8.75 and an "Outperform" rating.
For deeper insights into these and other global infrastructure companies, InvestingPro offers comprehensive financial analysis and exclusive research reports covering 1,400+ top stocks worldwide.
In other recent news, RBC Capital and Citi have upgraded their price targets for Energy Transfer, citing increased estimates and potential for long-term growth. RBC Capital now forecasts Energy Transfer's Adjusted EBITDA to reach $15.560 billion in 2024, $16.320 billion in 2025, and $17.023 billion in 2026.
Meanwhile, Citi projects a potential 13% return for Energy Transfer through 2029, based on an expected 5.5% compound annual growth rate in earnings per unit and a distribution yield of about 7.5%.
Sunoco LP, a significant entity in energy infrastructure and fuel distribution, recently unveiled its financial and operational projections for the year 2025. The company, which reported an impressive $83.7 billion in revenue over the past year, also announced its participation in the upcoming Mizuho (NYSE:MFG) Power, Energy & Infrastructure Conference. However, the company emphasized that these forward-looking statements are subject to various risks and uncertainties.
Energy Transfer, the general partner of Sunoco LP, has been a point of interest for investors due to its recent financial performance and future prospects. The company's earnings have slightly exceeded expectations, as revealed in a conference call led by Tom Long.
In addition, Energy Transfer is planning a $13-billion LNG-export facility in Louisiana, demonstrating confidence in the incoming administration's more favorable regulatory environment. These are among the recent developments for both Sunoco LP and Energy Transfer.
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