- Spectra Energy (SE -1.4%) is downgraded to Hold from Buy at Argus, as its current share price is higher than Enbridge's $40.33 offer price, but the firm views the merger favorably.
- Argus likes the strong exposure of SE's natural gas transportation business to the Marcellus shale and says the company iswell positioned to benefit from increasing demand for natural gas.
- The firm thinks SE's expansion opportunities through the end of the decade will support above-average dividend growth, and adds that the recent awarding of a Mexican pipeline project signals possible resumption of capital spending in the energy sector.