{"id":481811,"date":"2026-02-18T00:21:10","date_gmt":"2026-02-18T00:21:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/481811\/"},"modified":"2026-02-18T00:21:10","modified_gmt":"2026-02-18T00:21:10","slug":"enbridge-tc-energy-downgraded-td-says-growth-thesis-has-played-out","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/481811\/","title":{"rendered":"Enbridge, TC Energy downgraded; TD says growth thesis has ‘played out’"},"content":{"rendered":"\n

Shares of Canadian pipeline giants Enbridge (ENB.TO<\/a>)(ENB<\/a>) and TC Energy (TRP.TO<\/a>)(TRP<\/a>) fell on Tuesday after stock market analysts issued downgrades, raising concerns about high valuations, and their respective pace of long-term growth.<\/p>\n

Enbridge<\/a> and TC each reported financial results last Friday<\/a>. The two firms own vast networks of natural gas pipelines that stretch across North America. Executives at the Calgary-based mid-stream companies see these assets benefiting from rising energy consumption, fuelled in part by the proliferation of data centres to power artificial intelligence.<\/p>\n

Enbridge says its secured backlog of projects through 2033 is worth $39 billion, spanning natural gas, oil, and renewable energy. TC says its current backlog is worth $21.4 billion.<\/p>\n

However, in a note to clients on Tuesday, TD Cowan analyst Aaron MacNeil downgraded Enbridge and TC Energy, as well as Pembina Pipeline (PPL.TO<\/a>)(PBA<\/a>), a smaller rival to the two pipeline giants.<\/p>\n

\u201cIn our January 2026 industry update, we said that companies that provide visibility to long-term growth will trade at a premium. Following strong share-price performances [year-to-date], we believe that this thesis has played out,\u201d he wrote.<\/p>\n

Toronto-listed Enbridge and TC shares have gained about 5.6 per cent and 9.6 per cent, respectively, in 2026. On Tuesday, Enbridge stock lost about 3.4 per cent in mid-day trading. TC shares fell around 2.6 per cent.<\/p>\n

CIBC Capital Markets downgraded TC shares on Monday, cutting its rating to \u201cneutral\u201d from \u201coutperformer.\u201d<\/p>\n

\u201cRecent price appreciation causes us to downgrade our rating,\u201d analyst Robert Catellier wrote in a note to clients. \u201cWhile the fundamentals and outlook remain promising, we\u2019d prefer a better entry point. The risk to our downgrade is if the company originates projects at a faster rate than contemplated in our estimates.\u201d<\/p>\n

Catellier raised his price target to $85 per share, from $81.<\/p>\n

TD Cowan\u2019s MacNeil downgraded Enbridge, TC, and Pembina to \u201chold\u201d from \u201cbuy.\u201d For Enbridge, he raised his price target to $72 per share from $70, boosted his target for TC to $88 from $84, and moved Pembina to $62 from $59.<\/p>\n

\u201cWe continue to observe anecdotal evidence of elevated funds flow into both Canadian energy as well as defensive names with strong secular growth tailwinds,\u201d he wrote. \u201cCanadian mid-stream checks both of these boxes.\u201d<\/p>\n

In a research note published on Sunday, BMO Capital Markets analyst Ben Pham said Enbridge\u2019s $39 billion project backlog is expected to push \u201ceven higher in the coming years. He says the company is delivering higher return on its investments, without any compromises on asset quality.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Canadian pipeline giants Enbridge (ENB.TO)(ENB) and TC Energy (TRP.TO)(TRP) fell on Tuesday after stock market analysts…\n","protected":false},"author":2,"featured_media":481812,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,28979,110446,304,116251],"class_list":["post-481811","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-enbridge","tag-energy-consumption","tag-renewable-energy","tag-tc-energy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/481811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=481811"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/481811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/481812"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=481811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=481811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=481811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}