US Capital Advisors Lifts Earnings Estimates for South Bow

Key Points

• US Capital Advisors raised South Bow’s FY2026 EPS estimate to $1.70 from $1.67, though the new forecast remains below the $1.78 analyst consensus.
• South Bow’s latest quarterly results missed expectations, with EPS of $0.44 versus $0.46 expected and revenue of $491 million. Revenue still increased 1% year over year, while net margin was 21.32%.
• The stock carries a consensus “Hold” rating and an average price target of $32, below its reported opening price of $37.39. South Bow also pays a quarterly dividend of $0.50, equivalent to a 5.3% annualized yield.

South Bow Corporation (NYSE:SOBO - Free Report) - Analysts at US Capital Advisors increased their FY2026 earnings per share (EPS) estimates for shares of South Bow in a research note issued to investors on Wednesday, July 29th. US Capital Advisors analyst J. Carreker now expects that the company will earn $1.70 per share for the year, up from their previous forecast of $1.67. The consensus estimate for South Bow's current full-year earnings is $1.78 per share.

South Bow (NYSE:SOBO - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by ($0.02). South Bow had a net margin of 21.32% and a return on equity of 15.24%. The company had revenue of $491.00 million for the quarter, compared to the consensus estimate of $491.21 million. During the same quarter in the previous year, the business earned $0.47 EPS. The company's quarterly revenue was up 1.0% on a year-over-year basis.

SOBO has been the subject of several other research reports. Royal Bank Of Canada reissued an "outperform" rating on shares of South Bow in a report on Monday, May 11th. Canadian Imperial Bank of Commerce lifted their price objective on South Bow from $33.00 to $36.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 26th. Scotiabank raised their target price on shares of South Bow from $36.00 to $39.00 and gave the company a "sector perform" rating in a report on Tuesday, July 21st. Weiss Ratings reissued a "buy (b+)" rating on shares of South Bow in a research note on Thursday, June 11th. Finally, Raymond James Financial initiated coverage on South Bow in a research report on Tuesday, June 9th. They issued an "outperform" rating for the company. Four analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $32.00.

South Bow Stock Performance

SOBO opened at $37.39 on Thursday. The company has a debt-to-equity ratio of 2.16, a quick ratio of 1.37 and a current ratio of 1.51. The stock has a market capitalization of $7.80 billion, a price-to-earnings ratio of 18.42 and a beta of 0.16. The company has a fifty day moving average of $36.79 and a 200 day moving average of $33.57. South Bow has a fifty-two week low of $25.01 and a fifty-two week high of $38.94.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Intact Investment Management Inc. boosted its position in South Bow by 19.6% in the 4th quarter. Intact Investment Management Inc. now owns 964,360 shares of the company's stock valued at $26,522,000 after buying an additional 158,100 shares during the period. JPMorgan Chase & Co. boosted its holdings in shares of South Bow by 204.1% in the third quarter. JPMorgan Chase & Co. now owns 118,991 shares of the company's stock valued at $3,366,000 after purchasing an additional 79,858 shares during the period. TD Waterhouse Canada Inc. grew its stake in South Bow by 7.6% in the fourth quarter. TD Waterhouse Canada Inc. now owns 1,336,103 shares of the company's stock worth $36,700,000 after purchasing an additional 93,805 shares in the last quarter. Vanguard Group Inc. raised its position in South Bow by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 8,667,365 shares of the company's stock valued at $238,387,000 after purchasing an additional 118,147 shares in the last quarter. Finally, Miller Howard Investments Inc. NY lifted its holdings in shares of South Bow by 4.6% during the 4th quarter. Miller Howard Investments Inc. NY now owns 798,348 shares of the company's stock valued at $21,931,000 after purchasing an additional 35,331 shares during the last quarter.

South Bow Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were paid a $0.50 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $2.00 dividend on an annualized basis and a yield of 5.3%. South Bow's dividend payout ratio (DPR) is presently 98.52%.

South Bow Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.