South Bow (NYSE:SOBO) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded South Bow from “hold” to “sell,” while the broader analyst consensus remains “hold” with a $32.67 average price target.
• South Bow reported quarterly EPS of $0.50, beating estimates of $0.45, and revenue of $546 million versus the $496.87 million consensus forecast.
• The stock opened at $34.68, with a $7.23 billion market capitalization and a 52-week trading range of $25.01 to $39.02; several major institutional investors also established new positions during the second quarter.

South Bow (NYSE:SOBO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts have also issued reports on the stock. Scotiabank upped their target price on shares of South Bow from $36.00 to $39.00 and gave the stock a "sector perform" rating in a research report on Tuesday, July 21st. TD Securities restated a "hold" rating on shares of South Bow in a research report on Thursday, July 16th. Barclays downgraded South Bow from an "equal weight" rating to an "underweight" rating and decreased their price objective for the stock from $35.00 to $33.00 in a report on Friday, October 9th. Royal Bank Of Canada reissued an "outperform" rating on shares of South Bow in a research note on Monday, August 10th. Finally, Raymond James Financial restated an "outperform" rating on shares of South Bow in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, South Bow has a consensus rating of "Hold" and a consensus target price of $32.67.

South Bow Stock Performance

South Bow stock opened at $34.68 on Friday. The firm's 50 day simple moving average is $35.72 and its 200 day simple moving average is $35.66. The company has a current ratio of 1.52, a quick ratio of 1.44 and a debt-to-equity ratio of 2.15. The firm has a market capitalization of $7.23 billion, a PE ratio of 16.71 and a beta of 0.22. South Bow has a 1-year low of $25.01 and a 1-year high of $39.02.

South Bow (NYSE:SOBO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.45 by $0.05. The firm had revenue of $546.00 million during the quarter, compared to the consensus estimate of $496.87 million. South Bow had a net margin of 22.99% and a return on equity of 15.84%. As a group, analysts expect that South Bow will post 1.87 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Cibc World Market Inc. purchased a new position in shares of South Bow in the second quarter worth $119,802,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in South Bow during the 2nd quarter valued at about $97,830,000. Bank of America Corp DE bought a new stake in South Bow during the 2nd quarter valued at about $97,176,000. Legal & General Group Plc bought a new position in shares of South Bow during the 2nd quarter worth $62,849,000. Finally, The Manufacturers Life Insurance Company purchased a new position in shares of South Bow during the second quarter valued at $41,216,000.

South Bow Company Profile

South Bow Corp. NYSE: SOBO is a midstream energy company focused on the transportation and handling of crude oil. The company owns and operates liquids pipeline infrastructure that connects Western Canadian production with refining and export markets in the United States.

Its principal asset is the Keystone Pipeline System, which transports crude oil from Canada to destinations in the U.S. Midwest and along the U.S. Gulf Coast. South Bow also operates related gathering, transportation and storage assets that support producers, refiners and other customers across the North American energy network.

South Bow was established as an independent publicly traded company through the separation of TC Energy's liquids pipelines business, which was completed in 2024.

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