South Bow Corporation (NYSE:SOBO) Stock Rated "Hold" by Wall Street Brokerages

Key Points

• South Bow has a consensus “Hold” rating from 15 analysts: eight recommend holding, four recommend buying and three recommend selling. The average 12-month price target is $33.00.
• The company’s latest quarterly results exceeded expectations, with EPS of $0.50 versus a $0.45 estimate and revenue of $546 million compared with the $496.87 million consensus.
• South Bow declared a quarterly dividend of $0.50 per share, equating to $2.00 annually and a 6.0% yield; its payout ratio is high at 90.5%.

South Bow Corporation (NYSE:SOBO - Get Free Report) has been given a consensus rating of "Hold" by the fifteen ratings firms that are presently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $33.00.

A number of research firms have recently commented on SOBO. Royal Bank Of Canada reiterated an "outperform" rating on shares of South Bow in a research report on Monday, August 10th. Weiss Ratings cut shares of South Bow from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Tuesday, September 8th. Barclays upped their price target on shares of South Bow from $34.00 to $35.00 and gave the company an "equal weight" rating in a report on Friday, August 7th. TD Securities reissued a "hold" rating on shares of South Bow in a research note on Thursday, July 16th. Finally, Scotiabank raised their price objective on shares of South Bow from $36.00 to $39.00 and gave the stock a "sector perform" rating in a research note on Tuesday, July 21st.

South Bow Trading Down 0.3%

South Bow stock opened at $33.15 on Thursday. The company has a debt-to-equity ratio of 2.15, a current ratio of 1.52 and a quick ratio of 1.44. The stock has a market cap of $6.92 billion, a P/E ratio of 15.00 and a beta of 0.14. The firm's 50 day moving average price is $36.45 and its 200-day moving average price is $35.67. 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 released its quarterly earnings data on Wednesday, August 5th. The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.45 by $0.05. South Bow had a net margin of 22.99% and a return on equity of 15.84%. The business had revenue of $546.00 million during the quarter, compared to the consensus estimate of $496.87 million. On average, equities analysts predict that South Bow will post 1.88 earnings per share for the current fiscal year.

South Bow Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 29th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 6.0%. The ex-dividend date is Tuesday, September 29th. South Bow's dividend payout ratio is presently 90.50%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SOBO. Capital International Investors lifted its holdings in South Bow by 0.6% during the 4th quarter. Capital International Investors now owns 15,483,085 shares of the company's stock valued at $425,840,000 after buying an additional 94,772 shares in the last quarter. Clearbridge Investments LLC raised its stake in shares of South Bow by 3.0% during the fourth quarter. Clearbridge Investments LLC now owns 7,262,965 shares of the company's stock valued at $199,514,000 after acquiring an additional 209,864 shares in the last quarter. Thornburg Investment Management Inc. raised its stake in shares of South Bow by 2.4% during the second quarter. Thornburg Investment Management Inc. now owns 3,721,332 shares of the company's stock valued at $130,974,000 after acquiring an additional 88,457 shares in the last quarter. Cibc World Market Inc. boosted its holdings in shares of South Bow by 11.8% in the fourth quarter. Cibc World Market Inc. now owns 3,571,092 shares of the company's stock valued at $98,241,000 after purchasing an additional 376,514 shares during the period. Finally, Dimensional Fund Advisors LP grew 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 worth $97,134,000 after purchasing an additional 565,787 shares in the last quarter.

About South Bow

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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