South Bow CorporationSOBO.TOBUY ON WEAKNESSMay 28, 2026Stock price when the opinion was issued
As of Jun 08, 2026. Market Open.
Likes Keystone Part 2. A play on moving oil from Canada to the US. Risky, and it might not happen -- needs partners. Current government and nation-building are positives for pushing ahead. If it does happen, expect $5 of upside. A nervous market, and we don't know what oil is going to do.
Last quarter was in line. Balance sheet improving. Trades at 15x PE for 2027 for 25% growth. Good risk/reward. Beautiful yield of 6.41% while you wait.
Prairie Connector project is a key catalyst, worth about $5 a share, and not yet in the stock price. Q1 was in line, Keystone was a bit lower (offset by marketing strength). Meritorious story right now for Canada's future.
At 18x PE for 2028, no longer cheap. Growth of 16%. Wait for a pullback. But if you're in it for the long term, could add a bit here. Great dividend.