South Bow Corporation (NYSE:SOBO) Stock Now Rated “Hold” by Wall Street Analysts

South Bow Corporation (NYSE:SOBO) has received an average rating of “Hold” from the fifteen ratings firms that are covering the stock, Marketbeat Ratings reports. Three analysts have rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $33.00.

A number of equities analysts recently commented on SOBO shares. BMO Capital Markets reissued a “market perform” rating on shares of South Bow in a research note on Monday, July 6th. Scotiabank raised their target price on shares of South Bow from $36.00 to $39.00 and gave the stock a “sector perform” rating in a report on Tuesday, July 21st. Barclays upped their price objective on South Bow from $34.00 to $35.00 and gave the company an “equal weight” rating in a research report on Friday, August 7th. Weiss Ratings cut South Bow from a “buy (a-)” rating to a “buy (b+)” rating in a report on Tuesday, September 8th. Finally, TD Securities reiterated a “hold” rating on shares of South Bow in a research note on Thursday, July 16th.

Hedge Funds Weigh In On South Bow

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Capital International Investors lifted its stake in shares of South Bow by 0.6% during the fourth quarter. Capital International Investors now owns 15,483,085 shares of the company’s stock worth $425,840,000 after buying an additional 94,772 shares during the period. Clearbridge Investments LLC raised its position in shares of South Bow by 3.0% in the fourth quarter. Clearbridge Investments LLC now owns 7,262,965 shares of the company’s stock worth $199,514,000 after acquiring an additional 209,864 shares during the period. Thornburg Investment Management Inc. increased its stake in South Bow by 2.4% during the 2nd quarter. Thornburg Investment Management Inc. now owns 3,721,332 shares of the company’s stock worth $130,974,000 after buying an additional 88,457 shares in the last quarter. Cibc World Market Inc. raised its holdings in shares of South Bow by 11.8% during the fourth quarter. Cibc World Market Inc. now owns 3,571,092 shares of the company’s stock valued at $98,241,000 after acquiring an additional 376,514 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of South Bow by 24.1% in the first quarter. Dimensional Fund Advisors LP now owns 2,914,614 shares of the company’s stock valued at $97,134,000 after buying an additional 565,787 shares during the last quarter.

South Bow Stock Performance

NYSE:SOBO opened at $33.38 on Thursday. The stock has a 50-day simple moving average of $36.05 and a two-hundred day simple moving average of $35.67. The company has a debt-to-equity ratio of 2.15, a quick ratio of 1.44 and a current ratio of 1.52. The firm has a market capitalization of $6.96 billion, a PE ratio of 15.10 and a beta of 0.22. South Bow has a 52-week low of $25.01 and a 52-week high of $39.02.

South Bow (NYSE:SOBO) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.45 by $0.05. South Bow had a net margin of 22.99% and a return on equity of 15.84%. The firm had revenue of $546.00 million for the quarter, compared to the consensus estimate of $496.87 million. Analysts forecast that South Bow will post 1.88 EPS for the current year.

South Bow Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 29th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 6.0%. The ex-dividend date is Tuesday, September 29th. South Bow’s payout ratio is 90.50%.

About South Bow

South Bow Corp. (NYSE: SOBO) is a midstream energy company focused on the transportation and handling of crude oil. The company owns and operates liquids pipeline infrastructure that connects Western Canadian production with refining and export markets in the United States.

Its principal asset is the Keystone Pipeline System, which transports crude oil from Canada to destinations in the U.S. Midwest and along the U.S. Gulf Coast. South Bow also operates related gathering, transportation and storage assets that support producers, refiners and other customers across the North American energy network.

South Bow was established as an independent publicly traded company through the separation of TC Energy’s liquids pipelines business, which was completed in 2024.