Bullboard - Stock Discussion Forum South Bow Corp T.SOBO

Alternate Symbol(s): SOBO

Energy Oil & Gas Midstream

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. The Company connects Canadian crude oil supply to the strongest demand and refining markets in the United States Midwest and Gulf Coast. Its pipeline infrastructure, approximately 4,900 kilometers (km) (3,000 m), connects Alberta crude oil supplies to United States refining... see more

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TSX:SOBO - Post Discussion

South Bow Corp > South Bow Initiated at RBC with $34 Price Target, Outperform

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Post by Ariahp on Oct 03, 2024 8:02am

South Bow Initiated at RBC with $34 Price Target, Outperform

07:48 AM EDT, 10/03/2024 (MT Newswires) -- RBC Capital Markets initiated coverage of South Bow Corp. (SOBO.TO) with a $34 price target and Outperform rating.

Analyst Maurice Choy said the spinoff of TC Energy Corp.'s (TRP.TO) crude oil pipeline business offers investors "direct and material exposure to Keystone, one of North America's most critical energy pipelines that is underpinned by long-term contracted cash flows."

"The shares' trading may be volatile in the short term as the investor base changes, although the stock's attractive dividend should keep any weakness in check," the analyst said in a note to clients.

"Longer term, the stock's valuation could improve when the market sees South Bow's financial setup and growth outlook materially improve, and perceives Keystone's physical asset integrity more favourably," Choy said.

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