Scotiabank Has Negative Opinion of South Bow FY2027 Earnings

South Bow Corporation (NYSE:SOBO) – Scotiabank decreased their FY2027 earnings per share estimates for South Bow in a report released on Thursday, October 22nd. Scotiabank analyst R. Hope now forecasts that the company will post earnings of $1.85 per share for the year, down from their prior forecast of $2.03. Scotiabank currently has a “Sector Perform” rating and a $39.00 target price on the stock. The consensus estimate for South Bow’s current full-year earnings is $1.87 per share.

South Bow (NYSE:SOBO) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.05. South Bow had a return on equity of 15.84% and a net margin of 22.99%. The company had revenue of $546.00 million during the quarter, compared to analysts’ expectations of $496.87 million.

Other analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of South Bow from a “hold” rating to a “sell” rating in a report on Saturday, October 17th. Weiss Ratings downgraded shares of South Bow from a “buy (a-)” rating to a “buy (b+)” rating in a report on Tuesday, September 8th. Canadian Imperial Bank of Commerce dropped their price objective on shares of South Bow from $36.00 to $35.00 and set a “neutral” rating on the stock in a report on Thursday. Raymond James Financial reaffirmed an “outperform” rating on shares of South Bow in a research report on Wednesday, October 14th. Finally, Royal Bank Of Canada reiterated an “outperform” rating on shares of South Bow in a research note on Monday, August 10th. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $32.50.

South Bow Trading Up 0.6%

Shares of SOBO stock opened at $35.66 on Monday. The firm has a market capitalization of $7.44 billion, a P/E ratio of 16.14 and a beta of 0.22. South Bow has a 1 year low of $25.01 and a 1 year high of $39.02. The firm’s fifty day simple moving average is $35.51 and its 200 day simple moving average is $34.16. The company has a current ratio of 1.52, a quick ratio of 1.44 and a debt-to-equity ratio of 2.15.

South Bow Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Tuesday, September 29th were paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date was Tuesday, September 29th. South Bow’s dividend payout ratio is presently 90.50%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Thornburg Investment Management Inc. boosted its stake in South Bow by 2.4% during the second 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. acquired a new position in shares of South Bow in the 2nd quarter valued at $119,802,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of South Bow in the 2nd quarter valued at $97,830,000. Bank of America Corp DE acquired a new position in shares of South Bow in the 2nd quarter valued at $97,176,000. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of South Bow by 24.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,914,614 shares of the company’s stock worth $97,134,000 after acquiring an additional 565,787 shares during the period.

About South Bow

South Bow Corp. (NYSE: SOBO) is a liquids-focused energy infrastructure company headquartered in Calgary, Alberta. The company owns and operates crude oil transportation and storage assets that connect Canadian production regions with refineries, storage hubs and export markets in the United States.

South Bow’s primary asset is the Keystone Pipeline System, which transports crude oil from Western Canada to destinations in the U.S. Midwest and along the U.S. Gulf Coast. The company also operates the Marketlink system, which moves crude from Cushing, Oklahoma, to the Gulf Coast, as well as Canadian pipeline assets serving oil sands and other production areas.

South Bow began operating as an independent publicly traded company in October 2024 following its separation from TC Energy.