Analysts Cut Ratings on Enbridge and TC Energy After Big Runs

Shares of Canadian energy infrastructure giants Enbridge Inc. (TSX: ENB) and TC Energy Corp. (TSX: TRP) pulled back recently after major analysts downgraded both names, even though they’ve performed well so far in 2026. The sell-off reflects growing skepticism about how much upside is left after strong share price gains rather than any sudden collapse in fundamentals.

Earlier this week, TD Cowen lowered its ratings on both pipeline operators from “buy” to “hold,” arguing that their growth narratives have largely been priced in by the market. After rallying appreciably year-to-date, TD’s view is that current valuations already reflect expected medium-term expansion, leaving less margin for further outperformance and making them less attractive at current levels.

That sentiment was echoed by other brokerages. Jefferies downgraded Enbridge to a “hold” from a more bullish stance, saying the stock had rerated significantly relative to its earnings and cash flow and now offers more limited upside. Even though Enbridge’s recent results showed EBITDA growth and profitable operations, the firm believes much of that potential is already captured in the share price.

Similarly, TC Energy’s rating was cut by at least one major bank, moving from outperform to neutral — even as analysts slightly raised price targets. In their view, the infrastructure giant’s future growth remains solid but doesn’t justify a premium rating after the stock’s strong run. The changes suggest a shift toward a more cautious stance on midstream energy names in the near term.

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Investors should keep perspective: pipeline companies like Enbridge and TC Energy still generate stable cash flow backed by long-term contracts and strong demand for energy transport and storage across North America. Their business models remain intact, but downgrades signal that some analysts think future returns may be more modest after recent gains.

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In short, the recent pullback is less about deteriorating fundamentals and more about higher expectations already built into prices, prompting analysts to take a more cautious view after strong performance. That doesn’t automatically mean the long-term thesis is broken — but it does suggest that investors may want to reassess entry levels and growth expectations after a rally.