
TSE:TRP
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.
TRP came out with a cost estimate to finish the Coastal GasLink projects, and costs have soared.
Material cost pressures have increased the capex estimate to $14.5B.
If the project is delayed into 2024, another $1.2B.
The company has warned on costs before, and now estimates are double the original cost expectation.
We do not expect this to impair the dividend, and with the drop yield is approaching 7%.
With the decline already in the price, we would HOLD. Unlock Premium - Try 5i Free
Distribution for gas and energy, plus owns 7 power plants. Share price down due to material cost overrun, a buying opportunity. Company will get through this temporary issue. Trades at 13x. Plenty of room for stock appreciation. Yield is 6.59%, double that of the TSX, but same valuation as the market.
(Analysts’ price target is $62.98)