South Bow Corporation (NYSE:SOBO) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analysts give South Bow an average recommendation of "Hold" from 13 firms (3 sell, 7 hold, 3 buy) with a mean 12‑month target of about $30.57; recent notes include a Jefferies upgrade to buy, a Wolfe downgrade to underperform, and several firms raising price targets (e.g., Barclays to $33, Scotiabank to $34).
• South Bow beat Q4 estimates with EPS of $0.61 versus $0.40 expected and revenue of $503M (vs. $500.6M), showing a 3.1% YoY revenue increase and strong margins (ROE 15.6%, net margin 21.8%); sell‑side analysts forecast ~1.74 EPS for the fiscal year.
• The company declared a quarterly dividend of $0.50 (annualized $2.00) implying a 6.0% yield, but the payout ratio is high at ~96%, which could raise sustainability concerns.

Shares of South Bow Corporation (NYSE:SOBO - Get Free Report) have been assigned an average rating of "Hold" from the thirteen ratings firms that are currently covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation and three have issued a buy recommendation on the company. The average 12 month target price among analysts that have covered the stock in the last year is $30.5714.

Several analysts recently weighed in on SOBO shares. Jefferies Financial Group raised South Bow from a "hold" rating to a "buy" rating in a research note on Monday, December 15th. Wolfe Research downgraded South Bow from a "peer perform" rating to an "underperform" rating and set a $24.00 price objective for the company. in a report on Wednesday, January 14th. National Bank Financial raised their price objective on South Bow from $29.00 to $30.00 and gave the stock a "sector perform" rating in a research report on Monday, March 16th. Barclays raised their price objective on South Bow from $27.00 to $33.00 and gave the stock an "equal weight" rating in a research report on Monday, March 9th. Finally, Scotiabank lifted their target price on South Bow from $30.00 to $34.00 and gave the stock a "sector perform" rating in a report on Friday, March 6th.

Institutional Investors Weigh In On South Bow

Several hedge funds and other institutional investors have recently modified their holdings of the company. Parkside Financial Bank & Trust increased its holdings in shares of South Bow by 10.0% during the fourth quarter. Parkside Financial Bank & Trust now owns 3,770 shares of the company's stock valued at $104,000 after acquiring an additional 344 shares in the last quarter. Aviso Financial Inc. boosted its position in South Bow by 8.2% in the third quarter. Aviso Financial Inc. now owns 5,200 shares of the company's stock worth $147,000 after purchasing an additional 394 shares during the last quarter. Quantinno Capital Management LP boosted its position in South Bow by 4.9% in the second quarter. Quantinno Capital Management LP now owns 10,175 shares of the company's stock worth $264,000 after purchasing an additional 478 shares during the last quarter. LPL Financial LLC raised its stake in shares of South Bow by 1.6% in the fourth quarter. LPL Financial LLC now owns 38,499 shares of the company's stock valued at $1,058,000 after buying an additional 615 shares during the period. Finally, EverSource Wealth Advisors LLC raised its stake in shares of South Bow by 157.3% in the third quarter. EverSource Wealth Advisors LLC now owns 1,055 shares of the company's stock valued at $30,000 after buying an additional 645 shares during the period.

South Bow Stock Performance

SOBO opened at $33.46 on Thursday. The firm has a market cap of $6.97 billion, a P/E ratio of 16.09 and a beta of 0.15. South Bow has a 52-week low of $21.16 and a 52-week high of $34.90. The company has a debt-to-equity ratio of 2.13, a quick ratio of 1.43 and a current ratio of 1.50. The business's fifty day moving average is $31.96 and its 200-day moving average is $28.86.

South Bow (NYSE:SOBO - Get Free Report) last released its earnings results on Thursday, March 5th. The company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.21. The company had revenue of $503.00 million for the quarter, compared to analyst estimates of $500.57 million. South Bow had a return on equity of 15.55% and a net margin of 21.80%.South Bow's quarterly revenue was up 3.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.54 EPS. Sell-side analysts expect that South Bow will post 1.74 EPS for the current fiscal year.

South Bow Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $0.50 per share. The ex-dividend date is Tuesday, March 31st. This represents a $2.00 annualized dividend and a dividend yield of 6.0%. South Bow's payout ratio is currently 96.15%.

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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