Scotiabank Has Strong Forecast for South Bow FY2026 Earnings

Key Points

• Scotiabank raised South Bow’s FY2026 EPS forecast to $1.84 from $1.75, above the $1.81 analyst consensus. The bank maintained a “Sector Perform” rating and a $39 price target.
• South Bow’s latest quarterly results exceeded expectations, with EPS of $0.50 versus the $0.45 consensus and revenue of $546 million versus estimates of $496.87 million.
• The company declared a quarterly dividend of $0.50, equating to $2.00 annually and a 5.2% yield; meanwhile, analysts maintain a consensus “Hold” rating with an average target price of $33.

South Bow Corporation (NYSE:SOBO - Free Report) - Analysts at Scotiabank upped their FY2026 earnings per share (EPS) estimates for South Bow in a research note issued to investors on Wednesday, August 19th. Scotiabank analyst R. Hope now expects that the company will post earnings of $1.84 per share for the year, up from their previous forecast of $1.75. Scotiabank currently has a "Sector Perform" rating and a $39.00 target price on the stock. The consensus estimate for South Bow's current full-year earnings is $1.81 per share.

Other research analysts have also issued reports about the stock. BMO Capital Markets reaffirmed a "market perform" rating on shares of South Bow in a research note on Monday, July 6th. Raymond James Financial initiated coverage on shares of South Bow in a report on Tuesday, June 9th. They issued an "outperform" rating on the stock. National Bank Financial raised their price target on shares of South Bow from $31.00 to $35.00 and gave the company a "sector perform" rating in a research report on Monday, June 1st. Canadian Imperial Bank of Commerce lifted their price target on South Bow from $33.00 to $36.00 and gave the company a "neutral" rating in a research note on Tuesday, May 26th. Finally, Wall Street Zen raised South Bow from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $33.00.

South Bow Stock Performance

Shares of SOBO stock opened at $38.45 on Friday. 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 fifty day simple moving average of $36.63 and a two-hundred day simple moving average of $34.64. South Bow has a 12 month low of $25.01 and a 12 month high of $38.94. The firm has a market capitalization of $8.02 billion, a PE ratio of 17.40 and a beta of 0.15.

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 analysts' consensus estimates of $0.45 by $0.05. South Bow had a return on equity of 15.84% and a net margin of 22.99%.The company had revenue of $546.00 million for the quarter, compared to analyst estimates of $496.87 million.

South Bow Announces Dividend

The company also recently announced 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. The ex-dividend date is Tuesday, September 29th. This represents a $2.00 annualized dividend and a dividend yield of 5.2%. South Bow's dividend payout ratio is currently 90.50%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SOBO. Intact Investment Management Inc. lifted its position in shares of South Bow by 19.6% during the 4th quarter. Intact Investment Management Inc. now owns 964,360 shares of the company's stock worth $26,522,000 after buying an additional 158,100 shares in the last quarter. Bank of America Corp DE increased its position in shares of South Bow by 23.3% during the first quarter. Bank of America Corp DE now owns 1,993,768 shares of the company's stock valued at $66,432,000 after acquiring an additional 376,108 shares during the last quarter. Renaissance Technologies LLC purchased a new stake in shares of South Bow during the first quarter valued at approximately $1,162,000. First Trust Advisors LP bought a new stake in South Bow during the first quarter worth $945,000. Finally, Vanguard Group Inc. lifted its holdings in South Bow by 1.4% during the fourth quarter. Vanguard Group Inc. now owns 8,667,365 shares of the company's stock worth $238,387,000 after acquiring an additional 118,147 shares during the period.

About South Bow

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.

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