Jefferies Downgrades Enbridge to Hold After 12% Rally, Lifts Target to C$76
Jefferies downgraded Enbridge to Hold from Buy after shares re-rated nearly a turn of EBITDA to their highest multiple since 2022 following a roughly 12% year-to-date gain. The stock trades at 12.8x 2027 EBITDA and 12.2x 2028 EBITDA, and the price target was raised to C$76.
1. Jefferies Downgrades Rating to Hold
Jefferies lowered Enbridge’s rating from Buy to Hold, citing elevated valuation after a rapid rerating in recent weeks. The downgrade reflects concerns that recent gains may be driven more by cross‐sector fund flows than by fundamental improvements.
2. YTD Performance and Flow-Driven Rally
Enbridge shares have risen roughly 12% year-to-date, mirroring a broader midstream sector rally near 13%. Analysts attribute the surge to money rotating out of U.S. technology and into energy, lifting valuation multiples across the board.
3. Valuation Multiples and Price Target Hike
The stock now trades at 12.8x 2027 EBITDA and 12.2x 2028 EBITDA, representing about a 0.5x discount to peers like TC Energy. Jefferies raised its price target to C$76 from C$71, while maintaining a roughly 5% long-term EBITDA growth outlook.