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Investing.com - BMO Capital has raised its price target on Enbridge Inc. (TSX:ENB) (NYSE:ENB) to C$70.00 from C$67.00 while maintaining a Market Perform rating on the stock. Currently trading at $47.75, Enbridge shares have delivered a robust 19.28% return year-to-date.
The price target increase follows Enbridge’s 2026 guidance, which BMO described as containing no "earth-shattering revelations" with approximately 4% year-over-year growth expected. The $104.09 billion market cap company has been a reliable dividend payer, maintaining dividend payments for 53 consecutive years with a current yield of 5.63%.
BMO noted that Enbridge’s guidance implies approximately 8% three-year EBITDA CAGR through 2026 at the midpoint, compared to the company’s guidance of 7-9%, and a DCF CAGR of about 3%, in line with the company’s guide. Enbridge reported $12.25 billion in EBITDA for the last twelve months.
The firm highlighted that Enbridge’s 2026 expected growth capital expenditure of approximately $10 billion aligns with its annual investable capacity of $9-10 billion, maintaining a self-funded balance sheet that is expected to remain within the target range of 4.5-5x debt/EBITDA.
BMO attributed its price target increase primarily to higher target valuation and Enbridge’s new US$1.4 billion MLO1 project. The stock is currently trading near its 52-week high of $50.54, suggesting potential overvaluation according to InvestingPro Fair Value metrics. For deeper insights and additional ProTips on Enbridge, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Enbridge Inc. announced a 3% increase to its annual common share dividend, marking the 31st consecutive year of dividend growth. The company provided financial guidance for 2026, projecting adjusted earnings before interest, income taxes, and depreciation (EBITDA) of $20.2 billion to $20.8 billion and distributable cash flow per share of $5.70 to $6.10. Additionally, Enbridge has committed to a $1.4 billion investment in its Mainline Optimization Phase 1 project, aimed at increasing pipeline capacity for Canadian heavy oil deliveries to U.S. refining markets by 2027. RBC Capital has raised its price target for Enbridge to C$72, maintaining an Outperform rating, citing the company’s strong growth outlook. Enbridge’s recent financial results for the second quarter of 2025 showed record EBITDA and an increase in earnings per share. The company continues its strategic expansions with new projects and acquisitions. Despite positive financial performance, Enbridge’s stock experienced a slight decrease in premarket trading, indicating cautious investor sentiment. These developments reflect Enbridge’s ongoing efforts to enhance its infrastructure and financial performance.
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