Enbridge: Strong Performance and Dividend Yield Balanced by Fair Valuation – Hold Rating Maintained

Analyst Benjamin Pham of BMO Capital maintained a Hold rating on Enbridge (ENB – Research Report), boosting the price target to C$63.00.

Benjamin Pham has given his Hold rating due to a combination of factors that reflect both positive and cautious outlooks for Enbridge. The company’s strong first-quarter results for 2025 have demonstrated solid momentum, with record levels in the Mainline and high utilization in gas pipeline infrastructure. Additionally, the favorable USD exchange rate has provided an extra boost. Despite these positive indicators, Pham maintains a Market Perform rating because the stock’s current valuation appears fair, trading at 12.5x EV/EBITDA, which is higher than its peers.
While Enbridge’s growth prospects are supported by a secured backlog and potential acquisitions, Pham believes that the shares are fairly valued at present. The company’s strong dividend yield of approximately 6% and its low-risk, utility-like profile with over 98% regulated assets are attractive. However, given the stock’s recent outperformance and the current valuation, Pham concludes that a Hold rating is appropriate, suggesting that the stock is not undervalued enough to warrant a Buy recommendation.

In another report released today, Barclays also maintained a Hold rating on the stock with a C$64.00 price target.