National Bank lowered target price 03:03 PM EDT, 07/29/2022 (MT Newswires) -- National Bank Financial on Friday reiterated its sector-perform rating on the shares of TC Energy (TRP.TO) while trimming its price target to C$65.00 from C$66.00 after the pipeline and power company reported second-quarter results.
"TRP reported Q2/22 comparable EBITDA of $2,369 mln versus our estimate of $2,318 mln (street $2,292 mln) while reaffirming its 2022 outlook and its 3-5% dividend growth guidance ... With Western Canadian capital cost pressures mounting, TRP announced its revised capital plan of $28 bln (was $25 bln), which includes an updated $2.1 bln equity contribution (was $0.2 bln) for the now $11.2 bln Coastal GasLink project (35% TRP; ~70% complete), following a commercial settlement with LNG Canada. As such, the company has reinstated its DRIP and will look to raise ~1.2 bln of equity over the following four quarters. Meanwhile, we note TRP continues to progress the signing of renewable power contracts to support its Keystone Pipeline System, now totaling ~820 MW of wind and solar. Overall, our target taps down $1 to $65, and combined with our forecast D/EBITDA ratio continuing to hover above the company's ~4.75x target through 2025e, we maintain our Sector Perform rating," analyst Patrick