Citi Revises Enbridge Stock Price Target for 2026

Citi has revised its price target for Enbridge stock, aiming for $77 by 2026. This adjustment reflects the bank’s confidence in Enbridge after a robust fourth-quarter performance.

Enbridge’s Strong Financial Performance

On February 19, Citi reiterated a “Buy” rating on Enbridge, raising its price target from $75. Analysts responded positively to the company’s fourth-quarter results, which exceeded expectations and revealed several new projects linked to growing power demand in North America.

Key Metrics from Q4 2025

• Adjusted EBITDA surpassed the midpoint of guidance for the year.
• Distributable cash flow (DCF) per share also exceeded projections.
• The mainline pipeline transported around 3.1 million barrels per day on average throughout the year.
• Demand outpaced capacity for almost all of the past year, with only three exceptions.

CEO Greg Ebel emphasized significant growth activities with the sanctioning of over $14 billion in new capital projects throughout 2025. These projects span Enbridge’s four main business units, including liquids pipelines and renewable energy.

Growth Outlook and Dividend Strategy

Enbridge’s secured growth backlog now totals $39 billion, representing a 35% increase since March 2025. For 2026, the company predicts EBITDA between $20.2 billion and $20.8 billion, and a DCF per share in the range of $5.70 to $6.10. With an annual dividend of $3.88 per share, the payout ratio stands around 66%.

One of the driving forces behind Enbridge’s growth is the rise of artificial intelligence. Data centers are increasingly consuming electricity, which fuels demand for natural gas. The Gas Transmission team is exploring over 50 potential data center projects that could substantially boost natural gas demand in the coming decade.

Long-Term Dividend Growth

Enbridge has a strong track record for dividend growth, raising its payout for 31 consecutive years. The company anticipates distributions of $40 billion to $45 billion over the next five years, fully supported by regulated cash flows. Currently, the payout ratio lies within the company’s target range of 60% to 70% DCF.

• Annual investment capacity is projected between $10 billion and $11 billion.
• Average return on capital for 2025 projects is around 11%.
• Renewable projects are achieving returns in the mid-teens.

Citi’s updated price target of $77 reflects its confidence in Enbridge’s sustained performance and strategic positioning in the energy sector. With a solid dividend history and extensive backlog, Enbridge remains an attractive investment opportunity for those focusing on income and growth. Investors are left to ponder whether this stock deserves a place in their portfolios, especially in light of the shifting energy landscape influenced by AI advancements.