$SOBO

South Bow Initiated at Outperform, $60 Price Target at Raymond James

South Bow Corp. (SOBO.TO, SOBO) was rated Outperform with a $60 price target in new coverage at Raymond James.Analyst Michael Barth said the Calgary-based energy infrastructure company, which owns and operates the Keystone Pipeline System, controls "an irreplaceable long-duration asset that underpins predictable cash flows for decades.""Keystone is young as far as Canadian long-haul pipelines go, and is still largely operating under the initial multi-decade take-or-pay contract structure," Barth said in a note to clients."Those take-or-pay contracts cover >90% of total capacity, and are supported by high quality counterparties, which gives us high visibility to a stable FCF stream to support deleveraging and/or new growth," the analyst said."We don't necessarily buy into the idea that significant toll upside exists as those initial take-or-pay contracts roll off in the early-2030s, but we do expect that supply/demand for egress from the WCSB will remain sufficiently tight that recontracting of capacity should be a layup."

Raymond James Initiates South Bow at Outperform With CA$60 Price Target

South Bow (SOBO) has an average rating of hold and mean price target of CA$48.43, according to analysts polled by FactSet.

South Bow Maintained at Hold at TPH Following Prairie Connector Open Season; Price Target at C$52.00

Tudor, Pickering, Holt on Friday maintained its hold rating on the shares of South Bow (SOBO.TO, SOBO) with a C$52.00 price target after the oil-pipeline company secured binding commitments from shippers for its planned Prairie Connector pipeline project."This morning, SOBO announced a successful open season for its proposed Prairie Connector pipeline project, securing 20-year binding commitments from Hardisty, AB to US delivery points. Management is targeting an FID by mid-2027, contingent on securing remaining permits, government assurances for permit durability, advancing execution plans, finalizing cost estimates, and securing financing. The company said it will provide additional details on pre-FID activities and associated spending as part of its Q2'26 disclosures. In our view, the successful open season clears a significant milestone, highlighting shipper interest for the project. However, with a year to go before reaching positive FID, there's still some lingering execution risk, particularly around the durability of the permits. Without assurances that a new US administration would revoke the permits in 2029, as Biden did with KXL, the project is likely to be stalled. Should things progress positively, Prairie Connector would consist of approximately 380 km of new 36-inch pipeline from Hardisty to the Canada-U.S. border, where it would connect to Bridger Pipeline LLC's downstream facilities, while also leveraging roughly 150 km of previously installed and preserved 36-inch pipe and two pump stations," analyst AJ O'Donnell wrote.(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..com/contact-us)Price: $50.25, Change: $-0.83, Percent Change: -1.62%

RBC Raises South Bow's Price Target to C$49.00 from C$48.00

RBC Capital Markets lifted maintained its outperform rating on the shares of South Bow (SOBO.TO, SOBO) while raising its price target to C$49.00 from $48.00 after the pipeline company released its first-quarter results.While South Bow's highly contracted cash flows on the Keystone Pipeline continue to form the foundation of the company's stock investment thesis, Analyst Maurice Choy said the tailwinds associated with the Middle East conflict may see the company deliver a stronger financial performance than currently assumed by the market.RBC awaits South Bow's decision on the proposed Prairie Connector project, which can offer a material step-up in the company's growth profile, subject to having appropriate last mile risk protection," Choy said.The company's deleveraging trajectory and attractive dividend offering also remain intact, RBC said.Price: $48.43, Change: $+0.93, Percent Change: +1.96%

South Bow Q1 Normalized Net Income, Revenue Fall

South Bow (SOBO) reported Q1 normalized net income late Thursday of $0.44 per share, down from $0.47 a year earlier.Analysts polled by FactSet expected $0.44.Revenue in the three months ended March 31 fell to $491 million from $498 million a year earlier.Two analysts surveyed by FactSet expected $482.8 million.

Earnings Flash (SOBO) South Bow Reports Q1 Revs US$491M, Reported Net Income $77M ($0.37/share), Normalized EBITDA $257M, and Distributable Cash Flow $168M

Earnings Flash (SOBO) South Bow Posts Q1 Normalized Per Share US$0.44 per Share, vs. FactSet Est of $0.44

BMO Raises South Bow's Price Target to C$45.00 from C$44.00

BMO Capital Markets on Monday reiterated its market-perform rating on the shares of South Bow (SOBO.TO, SOBO) price target to C$45.00 from C$44.00.The higher price target reflects BMO's increased confidence in the proposed Prairie Connector project, a proposed pipeline that is a partial revival of the Keystone XL project.BMO cited higher commodity prices, favorable political environment, and expectations for increasing Western Canada Sedimentary Basin crude production that would require additional export egress.`Price: $43.71, Change: $-0.06, Percent Change: -0.14%

Goldman Sachs Initiates Coverage on South Bow With Sell Rating, CA$40 Price Target

UBS Adjusts Price Target on South Bow Corp to CA$45 From CA$39, Maintains Neutral Rating

UBS Adjusts Price Target on South Bow Corp to CA$45 From CA$39, Maintains Neutral Rating