TC Energy (TRP – Research Report), the Energy sector company, was revisited by a Wall Street analyst on February 18. Analyst Benjamin Pham from BMO Capital maintained a Hold rating on the stock and has a C$55.00 price target.
Geoff Meacham has given his Hold rating due to a combination of factors that suggest TC Energy’s stock is currently fairly valued. In the recent Q4/23 earnings report, TC Energy exceeded expectations in both its base business and new organic growth projects, which bodes well for the company’s financial health. The company’s adjusted EBITDA growth outpaced guidance, and they have announced targeted asset sales aimed at improving their debt-to-EBITDA ratio. Despite these positive developments, the stock price target remains unchanged, leading to the conclusion that the stock is appropriately priced at its current level.
Additionally, TC Energy’s shares have shown a solid performance, particularly after the Q4/23 results revealed earnings per share notably above consensus. The dividend increase and positive trends in debt management further underscore the company’s robust financial position. However, the outlook for 2024 includes expectations of lower earnings growth compared to prior estimates and a sizable secured growth program. Meacham sees the balance of positive and negative catalysts as a reason to maintain a Market Perform rating, indicating that there are equally compelling reasons to buy as there are to sell, hence recommending a Hold position.
Pham covers the Utilities sector, focusing on stocks such as TransAlta, Brookfield Renewable Partners, and Algonquin Power & Utilities. According to TipRanks, Pham has an average return of 6.5% and a 65.15% success rate on recommended stocks.
In another report released on February 16, Barclays also assigned a Hold rating to the stock with a C$55.00 price target.
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TC Energy (TRP) Company Description:
Canada-based TC Energy Corporation is an energy infrastructure company. It operates through the following business segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage.
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