BMO Capital analyst Benjamin Pham upgraded the rating on TC Energy to a Buy yesterday, setting a price target of C$83.00.
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Benjamin Pham has given his Buy rating due to a combination of factors that highlight TC Energy’s strong growth potential and solid financial performance. The company’s recent quarterly results demonstrate consistent project execution and a robust balance sheet, which are crucial in maintaining a sustainable growth trajectory. Furthermore, TC Energy’s strategic positioning in the natural gas pipeline and nuclear power sectors provides it with a competitive edge, warranting a premium valuation compared to its peers.
Additionally, the company’s guidance for a 5-7% annual growth in adjusted EBITDA, which is expected to extend into the next decade, underscores its long-term growth prospects. The secured project backlog and the potential for further expansion beyond 2028 add to the positive outlook. Despite the market’s lukewarm reaction to the recent results, Pham believes that TC Energy’s track record of exceeding expectations and the favorable business environment will support continued growth, justifying the Outperform rating and the increased price target.
In another report released yesterday, CIBC also upgraded the stock to a Buy with a C$78.00 price target.
Based on the recent corporate insider activity of 163 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRP in relation to earlier this year.