Jefferies upgrades Enbridge stock to Buy on strong growth potential

Published 23/07/2025, 06:38
Jefferies upgrades Enbridge stock to Buy on strong growth potential

Investing.com - Jefferies upgraded Enbridge Inc. (NYSE:ENB) (TSX:ENB) from Hold to Buy on Wednesday, while raising its price target to C$72.00 from C$65.00.

The upgrade comes as Jefferies highlighted Enbridge’s "widest opportunity set across both oil and gas pipelines," which provides the company with significant optionality to pursue diverse projects and supports confidence in its EBITDA growth potential.

Jefferies cited Enbridge’s dominant position in Canadian crude oil transportation, ownership of the TETCO pipeline system, and its emerging presence in the Permian Basin as key advantages that place the company in a favorable competitive position.

The firm noted that Enbridge offers a stronger total return profile, combining EBITDA compound annual growth rate (CAGR) and dividend yield, compared to competitor TRP (TSX:TRP).

While Jefferies acknowledged that "the magnitude of the gap isn’t incredibly wide," the firm stated it prefers Enbridge based on its more favorable screening across several key metrics.

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