
SOBO Stock Forecast & Price Target
SOBO Analyst Ratings
Bulls say
South Bow Corp is poised for a positive outlook due to anticipated improvements in its financial setup, aiming for alignment with peer performance, which could bolster investor confidence. The market is likely to respond favorably to enhanced perceptions of the Keystone Pipeline System's asset integrity, especially if sustained incident-free operations are achieved, leading to premium valuations. Additionally, the company's potential for accelerated growth, supported by long-term contracted cash flows with investment-grade counterparties, may exceed current expectations of 2-3% EBITDA compound annual growth rate (CAGR), further strengthening the financial outlook.
Bears say
South Bow Corp's financial outlook appears negative due to a revised Q2/25 EBITDA forecast of $246 million, reflecting a 7.4% decrease compared to previous expectations. The company's key segment, the Keystone Pipeline System, experienced a decline in throughput, with an average of 613,000 b/d in Q1/25, representing an 8,000 b/d decrease from Q4/24 due to lower uncommitted volumes. Additionally, anticipated hedge losses expected in Q2/25 to Q4/25, along with adjustments to the 2025 and 2026 EBITDA and DCF/share forecasts, further contribute to a pessimistic financial assessment.
This aggregate rating is based on analysts' research of South Bow Corp and is not a guaranteed prediction by Public.com or investment advice.
SOBO Analyst Forecast & Price Prediction
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