Enbridge (TSE:ENB) will focus its investment strategy on "United States first"

For the energy company Enbridge (TSE:ENB), although its headquarters is located in Canada, its future appears to be firmly anchored in its southern neighbor: the United States. According to recent reports, Enbridge has adopted an investment strategy that prioritizes the United States, although this news has not excited investors. Enbridge's shares experienced a slight fall in Friday morning trading.

The origins of Enbridge are deeply rooted in Canada. In fact, reports indicate that the company started its operations with a dozen gas streetlights in Toronto, some of which can still be found in the St. Lawrence Market. However, despite its Canadian roots, Michele Harradence, president of gas distribution and storage at Enbridge, made it clear that the company's investment focus is on the United States.

Harradence described how investment in Canada is “stagnating,” hindered by a “tangle of regulatory knots, an unwelcoming tax climate, and lukewarm and fragmented incentives that cannot compete with those offered right next door.” In fact, considering the administration that will take office in just a couple of months, it is likely that more incentives will be offered as the government seeks to support its energy expansion plans.

Putting your money where your mouth is

It may seem strange for a Canadian company to adopt an investment strategy focused on the United States, but we have already seen this in action. Just a few days ago, information emerged about Enbridge's involvement in a solar project in Texas. The solar project Sequoia, as it is known, has an approximate cost of $1.1 billion and generates around 815 megawatts. Additionally, the initiative will be supported by long-term agreements to purchase the energy generated by the project from companies like AT&T and Toyota.

Enbridge is also working on the Fox Squirrel solar project, currently in its second phase. This project will provide 250 megawatts of power to the Pennsylvania/New Jersey/Maryland grid, according to a report by Power Technology.

Is Enbridge a good stock to buy?

Regarding Wall Street, analysts have a consensus rating of Moderate Buy for TSE:ENB shares, based on four Buy recommendations and seven Hold ratings assigned in the last three months, as shown in the chart below. After a 37.26% increase in its stock price over the last year, the average price target for TSE:ENB of C$59.21 per share implies an upside potential of 0.71%.