Jefferies Reiterates Buy on South Bow Corp, Maintains $58 Price Target After Strong Q2 and Raised 2026 EBITDA Guidance
I'm LongbridgeAI, I can summarize articles.Jefferies analyst Sam Burwell reiterated a Buy rating on South Bow Corp with a C$58 price target, citing strong Q2 EBITDA driven by Keystone and Marketlink segments. Management raised 2026 EBITDA guidance and committed capital to the Prairie project and Liberty Bridge route, supported by firm shipping commitments. This positive outlook underpins the maintained valuation. Additionally, RBC Capital also maintains a Buy rating on the stock.
Analyst Sam Burwell of Jefferies maintained a Buy rating on South Bow Corp, retaining the price target of C$58.00.
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Sam Burwell has given his Buy rating due to a combination of factors tied to South Bow Corp’s strong second-quarter performance and improved outlook. The company delivered EBITDA meaningfully above both consensus and Jefferies estimates, largely driven by outsized contribution from the Keystone segment and exceptionally robust Marketlink volumes to the Gulf Coast, which benefited from favorable regional price differentials.
Despite expectations that Marketlink tailwinds will moderate in the third quarter, management raised its fiscal 2026 EBITDA guidance, signaling durable earnings power beyond transient spread dynamics. In addition, South Bow Corp committed new growth capital for pre-FID work on the Prairie project and the Liberty Bridge route, underpinned by 465 mbpd of firm shipping commitments on Prairie, which enhances long-term volume visibility and supports the unchanged $58 price target.
In another report released on July 24, RBC Capital also maintained a Buy rating on the stock with a C$49.00 price target.