TC Energy Maintained at Buy at Stifel FirstEnergy Following Q4 Results; Price Target Kept at C$61.00
11:23 AM EST, 02/20/2024 (MT Newswires) -- Stifel FirstEnergy on Tuesday reiterated its buy rating on the shares of TC Energy (TRP.TO, TRP) and its C$61.00 price target after the pipeline and power company reported fourth-quarter results.
"TRP delivered strong 4Q23 results ahead of Stifel and consensus estimates, reporting Comparable EBITDA of $3,107 mm (Stifel: $2,749 mm, Street: $2,818 mm) and Comparable EPS of $1.35/sh (Stifel: $1.03/sh, Street $1.08/sh). Results included a $200 mm ($0.19/sh) incentive payment relating to CGL milestones, but excluding that results still would have been a solid beat. The company also increased its dividend by 3.2% to $3.84/sh per annum (7.3% yield as of Thursday's close), in line with Stifel and consensus forecasts. The company's 2024 guidance was largely unchanged, and it reiterated its target of $3 bn of asset sales in 2024 and debt/EBITDA of 4.75x (using its internal calculations) by year-end. We view these results as a positive reminder of the growth potential of TRP's asset portfolio, reaffirming our view that TRP's current valuation (11.8x 2025E P/E at Thursday's close) is overstating its risk profile. We expect the stock to outperform," analyst Cole Pereira wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 53.74, Change: +0.42, Percent Change: +0.79