TC Energy initiated with a Neutral at Citi

Citi initiated coverage of TC Energy (TRP) with a Neutral rating and C$75 price target The company “uniquely” offers investors among the purest exposure to two of the fastest-growing segments of the energy market: natural gas and power, the analyst tells investors in a research note. The firm expects “secular macro tailwinds” to drive over 30% EBITDA growth over the next five years. However, TC Energy’s leverage will likely remain elevated and it should see slightly slower relative growth versus peers, contends Citi. It believes the shares are largely receiving credit for the company’s “peer-leading low volatility and exposure to strong, multi-decade tailwinds.”