HK-listed gold stocks jump as US economic fears boost bullion prices
On Friday, Scotiabank (TSX:BNS) analyst Robert Hope increased the price target on South Bow Corporation (NYSE:SOBO) shares to $27.00, up from the previous $26.00, while maintaining a Sector Perform rating. According to InvestingPro data, the stock currently trades at $24.63, with analyst targets ranging from $17.54 to $27.00, suggesting mixed sentiment about its valuation. The company boasts a substantial market capitalization of $5.1 billion. Hope’s adjustment followed South Bow’s report of a strong inaugural quarter, despite the 2025 EBITDA outlook not meeting the expectations of Scotiabank and the consensus, which was attributed to weaker spot volumes and marketing margins.
The company’s shares experienced a decline after the earnings release, a move that Hope considered a retraction from its recent strong performance. The analyst suggested that the initial guidance from South Bow likely includes a conservative approach. However, due to the anticipated softer marketing and spot volume outlook, Scotiabank has revised its estimates downward.
South Bow’s management emphasized their intention to seize growth opportunities within their existing corridors while ensuring such expansion does not compromise their ongoing debt reduction strategy. According to Hope, the revised price target of $27 reflects an anticipation of a faster than expected reduction in the company’s debt.
Looking ahead, Scotiabank anticipates that South Bow’s asset base, characterized by high quality, high contract coverage, and strong utilization rates, will continue to generate stable EBITDA and cash flows. The analyst’s commentary underscores the firm’s belief in South Bow’s financial resilience and the potential for consistent performance in the future.
In other recent news, South Bow Corp has been the subject of several notable developments. Wolfe Research downgraded the company’s stock rating from Outperform to Peerperform, following a 6% reduction in EBITDA guidance. This move highlights concerns about South Bow’s reliance on a single asset and potential risks associated with tariff delays. Despite these challenges, Wolfe Research acknowledged the company’s investment-grade credit rating and 8.0% yield, suggesting that the current valuation reflects a balance of risk and reward.
Additionally, TD Cowen initiated coverage on South Bow Corp with a Hold rating and a price target of C$34.00. This rating follows the company’s recent spin-off and a 15% increase in its share price. TD Cowen emphasized the significance of South Bow’s North American crude oil pipeline and its appeal to investors seeking high-yield opportunities. The Hold rating indicates that TD Cowen views the stock as fairly valued at current levels, given the company’s strategic assets and recent performance. These developments provide investors with updated insights into South Bow Corp’s position in the energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.