Tudor, Pickering, Holt on Wednesday reiterated its hold rating on the shares of Enbridge (ENB.TO, ENB) with a C$67.00 price target after the pipeline and utility company released 2026 guidance.
"Neutral. ENB provided FY'26 financial guidance this morning, projecting adjusted EBITDA of C$20.2-20.8B (up ~4% at midpoint) and DCF/shr of C$5.70-$6.10 (up ~5%), while maintaining their 3% dividend growth with 2026 guidance of C$3.88/shr. TPHe and the Street adj. EBITDA and DCF expectations were inside the range at C$20.7B and C$6.06/shr (TPHe), C$5.95/shr(Street), respectively, while the dividend raise matched TPHe and Street estimates. Guidance assumes a weaker CAD/USD exchange rate of 1.37 versus the 1.35 used in 2025 guidance, as well as another C$200-300MM in annual cost savings. Growth drivers for FY'26 include contributions from capital in-service and new rates on US utilities driving GDS EBITDA to increase C$400M y/y (TPHe C$4,329MM vs C$4,500MM guidance), contributions from recently sanctioned projects like Ridgeline, Aspen Point, and Matterhorn in GTM adding another ~C$400M, while Liquids Pipelines EBITDA remains flat y/y at C$9.6B as volumes and performance stay consistent with 2025 levels. The company expects to bring ~C$8B of secured capital into service in FY'26, up from ~C$5B in 2025, with major projects including Tennessee Ridgeline, and Aspen Point reaching completion. They're maintaining their 4.5-5.0x Debt/EBITDA leverage target with FY'26 expectations to trend towards the higher end of the range, while the DCF payout ratio is expected to remain between 60-70%. The 2026 quarterly EBITDA profile shows relatively balanced quarters with the typical seasonal utility weighting toward Q1 and Q4, and the company reaffirmed their post-2026 outlook of 5% annual growth across EBITDA, EPS, and DCF/share metrics," analyst AJ O'Donnell wrote
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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