TC Pipelines, LP (TCP) Rating Lowered to Hold at Zacks Investment Research
TC Pipelines, LP (NYSE:TCP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Following uncertainty over TC PipeLines' dropdown prospects, investor sentiment on the stock has turned tepid of late. Sponsor TransCanada's purchase of Columbia Pipeline Group and TCP's higher cost of capital is likely to limit dropdowns in 2016. As it is, the natural gas transporter is facing headwinds on its contracting efforts for the Great Lakes pipeline system. Concerns associated with the availability of natural gas supplied by Northern Border have also been a negative. However, we acknowledge TCP's ownership stakes in natural gas transportation assets that generate stable, recurring and low-risk earnings. TCP has also established a track of providing stable and growing cash distribution to unitholders, an indication of its financial strength. Considering these factors, we think that the current valuation is fair and adequately reflects the partnership’s future growth prospects.”
Several other research analysts have also commented on TCP. JPMorgan Chase & Co. lifted their price target on TC Pipelines, from $53.00 to $55.00 and gave the stock a “neutral” rating in a report on Friday, May 27th. Royal Bank Of Canada lifted their price target on TC Pipelines, from $53.00 to $61.00 and gave the stock a “sector perform” rating in a report on Monday, June 13th. Barclays PLC lowered TC Pipelines, from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $53.00 to $49.00 in a report on Monday, June 20th. Goldman Sachs Group Inc. reiterated a “neutral” rating and set a $53.00 price target on shares of TC Pipelines, in a report on Wednesday, July 20th. Finally, Citigroup Inc. lifted their price target on TC Pipelines, from $52.00 to $57.00 and gave the stock a “neutral” rating in a report on Wednesday, July 27th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $54.88.
Shares of TC Pipelines, (NYSE:TCP) opened at 52.67 on Monday. The company has a 50-day moving average of $52.99 and a 200-day moving average of $53.48. TC Pipelines, has a 1-year low of $34.25 and a 1-year high of $60.48. The stock has a market capitalization of $3.47 billion, a price-to-earnings ratio of 161.56 and a beta of 0.73.
TC Pipelines, (NYSE:TCP) last announced its quarterly earnings data on Thursday, August 4th. The company reported $0.76 earnings per share for the quarter, beating analysts’ consensus estimates of $0.64 by $0.12. On average, equities research analysts expect that TC Pipelines, will post $3.28 EPS for the current fiscal year.
Several hedge funds have recently modified their holdings of TCP. Diligent Investors LLC increased its position in TC Pipelines, by 1.0% in the second quarter. Diligent Investors LLC now owns 9,848 shares of the company’s stock valued at $564,000 after buying an additional 100 shares in the last quarter. Alliancebernstein L.P. increased its position in TC Pipelines, by 2.4% in the second quarter. Alliancebernstein L.P. now owns 8,133 shares of the company’s stock valued at $466,000 after buying an additional 193 shares in the last quarter. Conning Inc. increased its position in TC Pipelines, by 0.7% in the second quarter. Conning Inc. now owns 32,989 shares of the company’s stock valued at $1,889,000 after buying an additional 245 shares in the last quarter. Williams Jones & Associates LLC increased its position in TC Pipelines, by 2.8% in the second quarter. Williams Jones & Associates LLC now owns 10,864 shares of the company’s stock valued at $622,000 after buying an additional 300 shares in the last quarter. Finally, Ladenburg Thalmann Financial Services Inc. increased its position in TC Pipelines, by 18.1% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 2,480 shares of the company’s stock valued at $119,000 after buying an additional 380 shares in the last quarter.
TC Pipelines, Company Profile
TC PipeLines, LP is a limited partnership company that acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company’s pipeline systems transport natural gas in the United States. The Company has approximately four pipelines and equity ownership interests in over three natural gas interstate pipeline systems that are collectively designed to transport natural gas from producing regions and import facilities to market hubs, and consuming markets primarily in the Western, Midwestern and Eastern United States.
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