TD Securities Upgrades South Bow (NYSE:SOBO) to "Strong-Buy"

Key Points

• TD Securities upgraded South Bow from “hold” to “strong-buy,” while analyst views remain mixed: MarketBeat reports an overall “hold” consensus and an average price target of $32.67.
• South Bow beat quarterly expectations, reporting EPS of $0.47 versus $0.43 expected and revenue of $503 million versus $476.02 million expected.
• Shares opened at $32.24; the company has a market capitalization of $6.73 billion and a 52-week trading range of $25.87 to $39.02.

South Bow (NYSE:SOBO - Get Free Report) was upgraded by stock analysts at TD Securities from a "hold" rating to a "strong-buy" rating in a research report issued on Monday, Zacks reports.

A number of other brokerages have also weighed in on SOBO. Canadian Imperial Bank of Commerce cut their target price on shares of South Bow from $36.00 to $35.00 and set a "neutral" rating on the stock in a research report on Thursday, October 22nd. Wall Street Zen raised South Bow from a "sell" rating to a "hold" rating in a report on Saturday. Scotiabank upped their price objective on South Bow from $36.00 to $39.00 and gave the company a "sector perform" rating in a research note on Tuesday, July 21st. Raymond James Financial reissued an "outperform" rating on shares of South Bow in a report on Wednesday, October 14th. Finally, Royal Bank Of Canada reissued an "outperform" rating on shares of South Bow in a research note on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $32.67.

South Bow Price Performance

South Bow stock opened at $32.24 on Monday. The stock has a fifty day moving average of $34.86 and a 200-day moving average of $34.55. The stock has a market capitalization of $6.73 billion, a P/E ratio of 16.86 and a beta of 0.17. The company has a debt-to-equity ratio of 2.15, a quick ratio of 1.44 and a current ratio of 1.52. South Bow has a 52 week low of $25.87 and a 52 week high of $39.02.

South Bow (NYSE:SOBO - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.04. The firm had revenue of $503.00 million for the quarter, compared to analysts' expectations of $476.02 million. South Bow had a return on equity of 15.76% and a net margin of 22.81%. On average, sell-side analysts expect that South Bow will post 1.83 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SOBO. Thornburg Investment Management Inc. boosted its position in shares of South Bow by 2.4% during the 2nd quarter. Thornburg Investment Management Inc. now owns 3,721,332 shares of the company's stock valued at $130,974,000 after purchasing an additional 88,457 shares in the last quarter. Cibc World Market Inc. bought a new stake in South Bow in the second quarter worth approximately $119,802,000. Dimensional Fund Advisors LP lifted its stake in South Bow by 24.1% in the first quarter. Dimensional Fund Advisors LP now owns 2,914,614 shares of the company's stock valued at $97,134,000 after buying an additional 565,787 shares during the period. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of South Bow during the 2nd quarter worth approximately $97,830,000. Finally, Bank of America Corp DE bought a new position in shares of South Bow during the 2nd quarter worth approximately $97,176,000.

South Bow Company Profile

South Bow is a North American energy infrastructure company focused on transporting and storing crude oil. Its pipeline network connects production areas in Western Canada with refineries and other markets in Canada and the United States.

The company's assets include the Keystone Pipeline System, which carries crude from Alberta to destinations in the U.S. Midwest and Gulf Coast, along with other liquids pipeline infrastructure in Canada. South Bow was established as an independent company through the separation of TC Energy's liquids pipelines business in October 2024.

South Bow is headquartered in Calgary, Alberta.

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