Overview
BMO Capital raised its price target on Enbridge Inc. to Cdn$75.00 from Cdn$70.00 while keeping a Market Perform rating. The firm pointed to the energy infrastructure company’s fourth-quarter fiscal 2025 report and what it described as improving project returns and expanding project visibility as reasons for the higher target. Enbridge is trading at $51.21, close to a 52-week peak of $54.20, and has delivered a 30.66% total return over the past 12 months.
Financial results and dividend profile
Enbridge reported fourth-quarter fiscal 2025 earnings per share of $0.88, ahead of the consensus forecast of $0.7874. Revenue in the quarter came in at $8.46 billion, above the $8.39 billion projection. The company’s dividend track record also stands out: according to InvestingPro data cited by the analyst, Enbridge has paid dividends for 54 consecutive years and has increased its dividend for 23 consecutive years.
Project backlog and returns
BMO highlighted that Enbridge’s secured project backlog grew to $39 billion from $37 billion, and the firm expects that backlog to continue expanding in coming years. BMO projects an improvement in return on capital employed to roughly 9.5% in 2026, compared with about 9% over the prior three years. The analyst team emphasized asset quality, noting that more than 95% of Enbridge’s assets are contracted. The company’s current reported return on invested capital stands at 5% and the stock yields approximately 5.35%.
Growth guidance and valuation
BMO said visibility has increased for Enbridge’s roughly 5% growth guidance through the end of the decade. The boost to the price target reflects BMO’s higher valuation multiple and updated estimates while the Market Perform rating was maintained.
Other broker activity and project commentary
Separately, Jefferies moved its recommendation on Enbridge from Buy to Hold, while increasing its own price target to C$76.00 from C$71.00. Jefferies’ decision followed the company’s robust fourth-quarter EBITDA and positive comments on projects in Venezuela. Enbridge has also stated it is confident in sanctioning MLO2 this year and has referenced MLO3 in its commentary, indicating potential future project developments.
Market reaction and investor considerations
The combination of a raised target from BMO, a maintained Market Perform rating, a Jefferies downgrade to Hold with an elevated target, and stronger-than-expected quarterly earnings contributes to a complex picture for investors assessing Enbridge’s near-term valuation and medium-term growth profile. These elements have drawn investor attention to the stock and to the company’s project pipeline and dividend durability.
Key points
- BMO raised its price target on Enbridge to Cdn$75.00 from Cdn$70.00 while keeping a Market Perform rating.
- Enbridge reported Q4 fiscal 2025 EPS of $0.88 and revenue of $8.46 billion, both above forecasts.
- Secured project backlog increased to $39 billion from $37 billion, and BMO projects return on capital employed of about 9.5% in 2026.
Risks and uncertainties
- Brokerage ratings and price targets can diverge - BMO maintained Market Perform while Jefferies moved the stock from Buy to Hold, signaling differing analyst views that can affect investor sentiment and trading activity in the energy infrastructure sector.
- Project sanctioning and future developments - while Enbridge stated confidence in sanctioning MLO2 this year and referenced MLO3, the timing and execution of those decisions remain a focus for stakeholders in the oil and gas infrastructure space.
- Dependence on contracted assets and project execution - although more than 95% of assets are contracted, realized returns and backlog growth hinge on successful project execution and the evolving contracted portfolio.