Recently, shares of Enbridge Inc (Symbol: ENB) have moved past the average analyst 12-month target price of $42.65, trading at $43.09 per share. When a stock hits an analyst’s target, they face a choice: either downgrade their rating due to valuation or adjust their target price upwards. Their decision often hinges on the company’s business developments and overall market performance—which may influence the stock’s upward trajectory.
The average target price for Enbridge comes from 17 analysts within the Zacks coverage universe. However, this average masks a range of individual opinions. For instance, one analyst projects a lower target of $38.00, while another sets their sights on $48.12. The standard deviation among these forecasts stands at $2.671.
The appeal of using an average price target lies in the “wisdom of crowds,” where the collated insights from multiple experts often provide a more balanced outlook than an individual analyst’s view. As Enbridge shares climb above the average target price of $42.65, investors have a chance to reevaluate the company’s prospects. They must ask themselves: Is $42.65 a temporary stopping point on the way to a higher target, or has the stock price become overly inflated, necessitating a reassessment of their positions?
| Recent ENB Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 5 | 5 | 6 | 6 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 8 | 6 | 5 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 2 | 2 | 2 |
| Average rating: | 2.38 | 2.47 | 2.33 | 2.33 |
The average rating shown above uses a scale from 1 to 5, where 1 indicates a Strong Buy and 5 signifies a Strong Sell. Data for this article was sourced from Zacks Investment Research via Quandl.com. For the latest Zacks research report on ENB, visit their site for more information.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
