Enbridge Is Still Under $61. Here's Whether Long-Term Investors Should Pounce.

Enbridge (NYSE: ENB), which is based in Canada, is one of the world's largest pipeline and energy companies. It operates more than 70,000 miles of pipelines and smaller feeder lines across North America, and it's expanding its renewable energy business in Europe.

Enbridge's stock rallied more than 30% over the past 12 months and is hovering near its all-time high. Its robust growth, strategic acquisitions, and expanding infrastructure made it a good hedge against inflation, geopolitical conflicts, and other macro headwinds. Its midstream "toll road" model also made it a conservative way to profit from rising oil and gas prices.

However, Enbridge's stock remains 12% below analysts' top price target of $85 CAD ($61). Should long-term investors pounce on the stock at these levels, or wait for it to cool off?

How fast is Enbridge growing?

Over the past few years, Enbridge operated its oil pipelines at full capacity, secured new natural gas contracts, and acquired three natural gas utilities from Dominion Energy (NYSE: D) for $14 billion. It also recently restarted its construction of Line 5, a controversial pipeline that faced regulatory challenges in Michigan and Wisconsin, after years of delays.

From 2021 to 2025, Enbridge's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased at a 9.3% CAGR from $14.00 billion CAD to $19.95 billion CAD. Its distributable cash flow (DCF) rose from $10.04 billion CAD to $12.45 billion CAD, while its DCF per share grew at a 3.6% CAGR from $4.96 CAD to $5.71 CAD.

Enbridge's business model is well-insulated from volatile commodity prices, since it merely needs those resources to keep flowing through its pipes to generate stable profits. But it will also continue to expand as $8 billion CAD in new projects come online this year.

For 2026, Enbridge expects its adjusted EBITDA to rise to $20.2-$20.8 billion CAD, and its DCF to be $5.70-$6.10 CAD per share. That would easily cover its forward dividend rate of $3.88 CAD per share, yielding about 5.2%. It's raised its payout annually for 31 consecutive years.

Is Enbridge's stock worth buying?

Enbridge currently trades at about $75 CAD ($54), which values it at 13 times the midpoint of this year's DCF per share and 14 times its adjusted EBITDA. At $85 CAD, its stock would be only slightly pricier at 14 times this year's DCF per share and 15 times its adjusted EBITDA.

Therefore, Enbridge still looks like a good buy at these levels. It will benefit from the secular growth of the power-hungry cloud and AI markets, isn't too exposed to choppy commodity prices, pays an attractive dividend, and trades at an attractive valuation.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.