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  5. SOBO: Reviewing all your input on this stock, was wondering if you could share your take on the TD summary of analyst ratings (5) where three (3) are suggesting it is a "sell" while two (2) rank it as a ... [South Bow Corporation]
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Q: Reviewing all your input on this stock, was wondering if you could share your take on the TD summary of analyst ratings (5) where three (3) are suggesting it is a "sell" while two (2) rank it as a "hold", average target price being $33.04 while today it is trading at $35.83!
Am I missing something here. Appreciate all you excellent support.
Ted.
Asked by Ted on January 21, 2025
5i Research Answer:

Our data shows analysts as 7 BUY, 6 HOLDS, and 3 SELLS. Average target $34.92. It is not perfect. We had hoped it would start its dividend (8.03%) lower so that it could more easily raise it. Some analysts are worried about payout ratio and dividend sustainability. Debt is high, and it has only reported a single quarter as a public company. Consensus calls for growth of about 8% this year. We think it is trading primarily on yield only right now. But overall we would consider it decent. We are not too concerned about the sustainability of the dividend. It has upside potential if the sector does well, and sentiment may shift under Trump policies. We would of course like to see more quarters and how it might do in a different economy, but overall we would be favourable towards it.