JPMorgan initiated coverage of South Bow (SOBO) with a Neutral rating and $28 price target The company’s primary asset, the Keystone Pipeline, connects growing Western Canadian Sedimentary Basin crude oil production to “attractive” U.S. refining and export demand markets, the analyst tells investors in a research note. The firm says that with the pipeline encompassing nearly all of South Bow’s operations, heightened single asset risk “creates a unique business profile.” Further, JPMorgan thinks ongoing tariff disputes may temporarily impact Canadian to U.S. crude flows and pricing dynamics in the short term.
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