Transportadora De Gas Sur (TGS)

TGS, a major natural gas and NGL infrastructure operator in Argentina is reiterated as a TOP PICK.  The company is advancing a major $780 million pipeline project that will be accretive to cash flows going forward.  We recommend maintaining the stop at $27, looking to achieve $40 -- upside potential of 28%.  Yield 0.4%

We reiterate this energy infrastructure company operating in Argentina as a TOP PICK.  We like the steady utility like business model, including pipelines and midstream operations.  Key new NGL and pipeline projects are advancing at a time when global energy supply is strained.  We note the dividend has been zeroed for 2026 to allow cash reserves to continue to grow, while debt is retired.  We continue to recommend a stop at $27, looking to achieve $43 -- upside potential of 22%.  Yield 0%  

Our PAST TOP PICK with TGS has achieved its target at $34.  To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $27.  

Our PAST TOP PICK with TGS is progressing well.  To remain disciplined, we recommend trailing up the stop (from $20) to $27 at this time.  

Our PAST TOP PICK with TGS is progressing well.  To remain disciplined, we recommend trailing up the stop (from $16) to $20 at this time.  

TGS operates Argentina's most extensive natural gas gathering and processing network of pipelines and facilities.  Its revenues are stable and fee-based as it transports almost 2/3 of the country's natural gas.  It trades at 11x earnings, 1.6x book and supports a 20% ROE.  Cash reserves are growing, while debt is aggressively retired.  We recommend setting a stop-loss at $16, looking to achieve $34 -- upside potential of 32%.  Yield 0%