Enbridge Inc. (ENB:CA)
CIBC World Markets lowered its 12 month target price to $69.00 from $71.00, citing updated valuation assumptions. The adjustment reflects a more conservative view on near-term multiple expansion as higher interest rates, funding costs, and regulatory complexity continue to weigh on large-cap pipeline operators. While Enbridge’s cash flows remain highly stable and supported by long-term, contracted assets, CIBC appears to be factoring in a higher discount rate and more modest growth assumptions, particularly around incremental capital deployment and asset monetization.
National Bank of Canada raised its target price to $71.00 from $66.00, while maintaining a Sector Perform rating. The higher target reflects improved confidence in Enbridge’s balance sheet trajectory, including progress on debt reduction, asset recycling, and capital discipline. Analysts also pointed to the company’s resilient dividend profile and strong utility-like cash flow characteristics, which provide downside protection in volatile markets. However, the unchanged Sector Peform rating suggests that while valuation support has improved, upside potential remains capped by limited organic growth and ongoing sensitivity to interest rate expectations.
The updated analyst coverage underscorea Enbridge’s positioning as a defensive, income-oriented name, offering stability and yield rather than outsized capital appreciation. Analysts broadly view the shares as fairly valued at current levels, with performance likely to track broader rate movements and incremental execution on balance sheet and capital allocation priorities rather than transformational growth catalysts.
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