BMO Capital Upgrades Enbridge to Outperform, Lifts Price Target to C$79.50

Insider Monkey·20 Sep 2026·

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Analyst M&A · Partnership Oil, Gas & Consumable Fuels

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Summary · why it matters

BMO Capital upgraded Enbridge from Market Perform to Outperform on September 15 and slightly raised its price target from C$79 to C$79.50, implying 18% upside from current levels. The analyst cited Enbridge's scale, limited commodity exposure, diversified assets, improving visibility on growth, robust backlog, opportunistic acquisitions and an improved balance sheet, after the shares declined about 17% from their May record high. Enbridge announced on September 9 that it would acquire Tallgrass Energy's crude oil business for $2.55 billion in cash, expanding its US liquids pipeline network through a majority stake in the Pony Express Pipeline and other assets, and last month agreed to buy Salt Creek Midstream's crude oil gathering business for $600 million in cash. The company carries a C$41 billion secured growth backlog, has approved roughly C$9 billion of projects this year and has sanctioned up to C$20 billion in projects through the end of the decade, while 98% of its cash flow comes from long-term, inflation-protected, rate-regulated contracts and its dividend yields 5.78% after 31 consecutive years of quarterly payout growth. Concerns remain over leverage and dilution: Enbridge recently closed a C$3 billion equity offering to partly fund the acquisitions, and reported a 5.1x debt-to-EBITDA ratio at the end of the second quarter. The stock was held by 31 hedge funds at the end of Q2 2026 with a total investment value of $3.3 billion, down from 37 hedge funds and just over $4.5 billion in the prior quarter.

Enbridge Inc ▲