Enbridge: We Affirm Our Narrow Moat Rating; Shares Look Fairly Valued

After taking a second look at Enbridge, we are affirming our narrow moat, Medium Uncertainty, and Standard Capital Allocation Ratings. We are also increasing our fair value estimate to CAD 59 from CAD 56 and to $43 from $41 after reviewing Enbridge’s project pipeline and adjusting for the recent strong performance by the Mainline system. The Mainline and liquids segment as a whole remains the most decisive growth lever for the company. At just under half of our 2025 forecast EBITDA, relatively small improvements in rates or volumes can have a substantial impact. Pending rate cases in Utah and North Carolina look likely to resolve in Enbridge's favor, further boosting 2026 performance.