Tudor, Pickering, Holt on Wednesday maintained its hold rating on the shares of Enbridge (ENB.TO, ENB) while raising its price target to C$70.00 from an undisclosed prior level after the company released a three-year guidance outlook.

"After digesting last week's FY'26 guidance release, our updated ENB model reflects slight tweaks across the four main business segments, updates to the secured growth backlog, and a new valuation based on FY'27 metrics. At the segment level, the most notable changes were in Liquids Pipelines, where our FY'26 adj. EBITDA now stands at C$9.7B-down ~C$140MM from our previous model but still slightly ahead of the C$9.6B guidance midpoint. While we were already expecting flat Mainline earnings next year, the revision is driven primarily by more conservative expectations for ENB's Mid-Con, Gulf Coast, and Bakken assets, reflecting weakness observed in FY'25 and the FY'26 outlook. Beyond next year, our FY'27+ LP outlook moved higher, driven entirely by the sanctioning of MLO1, which will add 150 kbpd of egress capacity out of the WCSB and 100 kbpd of full-path capacity to the USGC on FSP. On the secured growth backlog, we see FY'26 spending coming slightly ahead of the company's C$10B guidance (TPHe C$10.1B), with FY'27 spending near a similar level at C$9.5B. However, we would not be surprised to see near-term spending trend higher throughout the year, given an expected mid-2026 FID on MLO2, pending a successful open season. Assuming project costs and economics similar to MLO1, we estimate the total MLO2 project would land around C$3.0B. With this higher spending profile, we expect leverage to hold near the top end of the 4.5-5.0x range before returning to ~4.5x by early 2029 as new projects enter service and FCF accelerates. With current valuation screening on the expensive side, we reiterate our Hold rating while raising our price target to C$70/share on the roll forward to FY'27 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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