South Bow Corporation (SOBO) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts remain cautious: South Bow has a consensus “Hold” rating from 15 analysts, with four sells, seven holds and four buys. The average 12-month price target is $32.50, below the reported share price of $35.41.
• Recent results exceeded expectations: South Bow reported quarterly EPS of $0.50 versus the $0.45 consensus estimate, while revenue reached $546 million compared with expectations of $496.87 million.
• Income remains a key attraction: The company pays a quarterly dividend of $0.50, or $2.00 annually, representing a 5.6% yield; however, its dividend payout ratio is high at 90.5%.

Shares of South Bow Corporation (NYSE:SOBO - Get Free Report) have been given a consensus recommendation of "Hold" by the fifteen ratings firms that are presently covering the firm, MarketBeat reports. Four analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and four have issued a buy recommendation on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $32.50.

Several research firms recently commented on SOBO. TD Securities reaffirmed a "hold" rating on shares of South Bow in a report on Thursday, July 16th. Canadian Imperial Bank of Commerce lowered their price objective on South Bow from $36.00 to $35.00 and set a "neutral" rating on the stock in a research note on Thursday. BMO Capital Markets restated a "market perform" rating on shares of South Bow in a report on Monday, July 6th. Raymond James Financial reaffirmed an "outperform" rating on shares of South Bow in a research note on Wednesday, October 14th. Finally, Barclays lowered South Bow from an "equal weight" rating to an "underweight" rating and reduced their price target for the stock from $35.00 to $33.00 in a report on Friday, October 9th.

South Bow Trading Down 0.1%

SOBO opened at $35.41 on Monday. 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 company's 50 day simple moving average is $35.54 and its two-hundred day simple moving average is $35.72. South Bow has a 1-year low of $25.01 and a 1-year high of $39.02. The firm has a market capitalization of $7.39 billion, a price-to-earnings ratio of 16.02 and a beta of 0.22.

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

South Bow Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Tuesday, September 29th were issued a $0.50 dividend. The ex-dividend date of this dividend was Tuesday, September 29th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 5.6%. South Bow's dividend payout ratio is currently 90.50%.

Hedge Funds Weigh In On South Bow

Institutional investors have recently bought and sold shares of the company. Baskin Financial Services Inc. acquired a new position in South Bow in the 3rd quarter valued at about $1,171,000. IFP Advisors Inc grew its stake in shares of South Bow by 202.6% in the 3rd quarter. IFP Advisors Inc now owns 2,454 shares of the company's stock valued at $81,000 after buying an additional 1,643 shares during the period. TD Waterhouse Canada Inc. grew its stake in shares of South Bow by 1.6% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 1,978,562 shares of the company's stock valued at $66,282,000 after buying an additional 31,776 shares during the period. Columbus Macro LLC acquired a new stake in shares of South Bow during the 3rd quarter worth approximately $6,108,000. Finally, Engineers Gate Manager LP increased its holdings in shares of South Bow by 10.5% during the 2nd quarter. Engineers Gate Manager LP now owns 15,391 shares of the company's stock worth $542,000 after buying an additional 1,458 shares during the last quarter.

About South Bow

South Bow Corp. NYSE: SOBO is a liquids-focused energy infrastructure company headquartered in Calgary, Alberta. The company owns and operates crude oil transportation and storage assets that connect Canadian production regions with refineries, storage hubs and export markets in the United States.

South Bow's primary asset is the Keystone Pipeline System, which transports crude oil from Western Canada to destinations in the U.S. Midwest and along the U.S. Gulf Coast. The company also operates the Marketlink system, which moves crude from Cushing, Oklahoma, to the Gulf Coast, as well as Canadian pipeline assets serving oil sands and other production areas.

South Bow began operating as an independent publicly traded company in October 2024 following its separation from TC Energy.

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