South Bow Corp (SOBO – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Benjamin Pham from BMO Capital maintained a Hold rating on the stock and has a C$36.00 price target.
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Benjamin Pham has given his Hold rating due to a combination of factors including South Bow Corp’s strong Q1/25 performance and the company’s resilient business model, which is largely supported by contracted EBITDA. Despite the company’s solid results and a tightened 2025 guidance, the valuation remains at a discount compared to peers, and the risk/reward profile appears balanced.
Furthermore, while the Blackrod project is progressing well and the recent Keystone oil spill is not expected to have a significant financial impact, South Bow Corp’s anticipated growth is somewhat lower than its peers, and its cash flows are less diversified. Additionally, the company’s balance sheet shows relatively high leverage. These elements contribute to the decision to maintain a Market Perform rating with a target price of C$36.
Pham covers the Utilities sector, focusing on stocks such as TransAlta, Algonquin Power & Utilities, and Fortis. According to TipRanks, Pham has an average return of 7.8% and a 65.07% success rate on recommended stocks.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a $27.00 price target.