Anthony Linton, an analyst from Jefferies, maintained the Hold rating on South Bow Corp (SOBO – Research Report). The associated price target is C$33.00.
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Anthony Linton has given his Hold rating due to a combination of factors influencing South Bow Corp’s current and future performance. The company’s recent financial results were in line with expectations, showing an adjusted EBITDA that matched both Jefferies’ estimates and consensus figures. However, there was a noticeable decline in quarterly and yearly comparisons, with adjusted EBITDA trending down by 8% quarter-over-quarter and 11% year-over-year.
Another factor contributing to the Hold rating is the narrowing of South Bow Corp’s 2025 guidance range, which now anticipates an adjusted EBITDA of $1.01 billion. This adjustment reflects broader macroeconomic challenges and the company’s strategic focus following a recent incident. Additionally, while there was some outperformance in the Marketing and Intra-Alberta segments, the overall volume on key pipelines like Keystone and Marketlink showed declines, further justifying a cautious outlook.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a $27.00 price target.