CIBC says too much negativity priced into TC Energy, boosting to Outperformer

As previously reported, CIBC analyst Robert Catellier upgraded TC Energy to Outperformer from Neutral with a price target of C$62, down from C$63. While the analyst noted that the $3.3B cost increase in the Coastal Gaslink, or CGL, project was above the firm’s prior estimate of $2B, CIBC "feared if could have been worse," and believes "the shares have priced in enough negativity." The analyst sees TC Energy taking a charge for the project with its Q4 results due to the cost increase, but also noted that the project is "now 83% complete and is still targeting mechanical completion in late 2023."