Raymond James remains bullish on Enbridge Inc. (ENB), with analyst Justin Jenkins raising the stock’s price target from C$65 to C$67.
According to a recent note to clients, Jenking’s target reflects growing confidence in Enbridge’s ability to sustain earnings growth, capitalize on organic expansion projects, and maintain its strong dividend track record.
The midstream giant’s stock has returned 33.5% over the past year and currently trades near its 52-week high of $45.78.
Stronger market positioning helps insulate Enbridge from external risks. CEO Greg Ebel recently told investors that the company’s integrated pipeline network and strong domestic market positioning limit its exposure to policy shifts.
Analysts agree. “Even in a more protectionist trade environment, Enbridge is well-positioned to navigate volatility given its long-term contracts and North American-focused operations,” noted RBC Capital Markets analyst Robert Kwan.
A midstream Leader with strong capital discipline
Jenkins highlighted Enbridge’s diversified asset base and disciplined capital management as key reasons for its premium valuation relative to peers.
The company—North America’s largest midstream operator by enterprise value—boasts 22 consecutive years of dividend increases, currently offering a 6.2% yield.
“We view Enbridge’s consistent execution, diversified portfolio, and leverage discipline as clear competitive advantages in an evolving energy landscape,” Jenkins wrote in a note to clients. “The company’s ability to grow earnings while maintaining balance sheet strength supports our continued Outperform rating.”
Other analysts agree. Goldman Sachs analyst Neil Mehta maintains a Buy rating, citing Enbridge’s resilient cash flows and its ability to fund future expansion without overextending leverage.
“Enbridge has a proven track record of managing capital efficiently, which gives it greater flexibility to pursue high-return projects,” Mehta noted.
Earnings beat and $8 billion in growth projects
Enbridge recently reported record financial performance for Q4 2024, with adjusted earnings per share (EPS) of $0.75, beating expectations of $0.74.
The company also posted higher EBITDA and distributable cash flow (DCF) per share, marking its 19th consecutive year of meeting or exceeding financial guidance.
CEO Greg Ebel emphasized the company’s long-term growth outlook in the earnings call, noting $8 billion in new organic projects, including solar, offshore wind, and natural gas distribution expansion in the U.S.
“Enbridge continues to position itself for the future with both traditional energy infrastructure and renewables, ensuring sustainable long-term returns for investors,” said Morningstar senior equity analyst Stephen Ellis.