CIBC Turns Bullish on Enbridge (ENB) After KKR-Apollo Deal

On August 28, CIBC raised its rating of Enbridge Inc. (NYSE:ENB) from Neutral to Sector Outperform and increased its price target, signaling an 11% upside potential from current levels. The analyst's upgrade is based on Enbridge's strategic partnership with KKR and Apollo Management, which will fund the pipeline's expansion projects, Aspen Point and Sunrise.

KKR and Apollo will provide up to C$700 million in upfront capital, while Enbridge will retain majority ownership and operational control. This JV allows Enbridge to recycle capital and minimize debt, making it an attractive option as demand for natural gas infrastructure surges. Recent upgrades from other asset managers, coupled with the stock's recent weakness, further bolster the endorsement.

The pipeline projects, backed by long-term take-or-pay contracts, have already secured regulatory approval and are commercially underpinned. By leveraging external capital, Enbridge is expanding its midstream footprint without sacrificing control. While the transaction will give up a 29% stake, Enbridge retains the option to repurchase the investors' interest in the JV after seven years.

The upgrade reflects CIBC's confidence in Enbridge's capital-recycling strategy and the attractive valuation of the JV. As of Q2 2026, 31 hedge funds held ENB, with a total investment value of $3.3 billion, down from 37 hedge funds in the previous quarter.