Jefferies downgraded Enbridge Inc. (ENB) to Hold from Buy, citing valuation concerns despite a strong fourth-quarter EBITDA beat. The Canadian midstream sector has surged 13% year-to-date, driven by cross-sector flows from tech to energy, but analysts warn the rally may lack structural support. Sam Burwell, leading the note, emphasized that while Enbridge’s shares now trade at a 0.5x discount to TC Energy, the re-rating appears flow-driven rather than fundamentals-backed. Jefferies raised its price target to C$76 (up from C$71), anticipating accelerated 2027–2028 EBITDA growth from 3% in 2026, though long-term growth targets remain at 5%. The downgrade reflects skepticism about sustained momentum in a sector where momentum is increasingly tied to market rotations rather than operational improvements.