TC Pipelines (TCP) Downgraded to Sell at Zacks Investment Research
Zacks Investment Research cut shares of TC Pipelines (NYSE:TCP) from a hold rating to a sell rating in a research note published on Tuesday.
According to Zacks, “Taking into account a host of issues, we are recalibrating our investment thesis on TC PipeLines to a 'Sell'. Uncertainty over the energy infrastructure provider's dropdown prospects has meant that 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. 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. Given these headwinds, we see TCP as a risky bet that ordinary investors should exit.”
A number of other analysts have also recently weighed in on TCP. Citigroup upgraded TC Pipelines from a neutral rating to a buy rating and set a $58.00 price target on the stock in a research report on Friday, December 8th. Royal Bank of Canada reiterated an outperform rating and issued a $68.00 price target (down from $72.00) on shares of TC Pipelines in a research report on Thursday, November 9th. UBS Group lowered their price target on TC Pipelines from $63.00 to $61.00 and set a buy rating on the stock in a research report on Tuesday, November 7th. Wells Fargo & Co lowered their price target on TC Pipelines from $62.00 to $58.00 and set a market perform rating on the stock in a research report on Wednesday, November 15th. Finally, Bank of America started coverage on TC Pipelines in a research report on Tuesday, January 9th. They issued a neutral rating on the stock. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $59.75.
TC Pipelines (NYSE:TCP) last released its quarterly earnings data on Monday, November 6th. The pipeline company reported $0.61 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.06). The firm had revenue of $100.00 million for the quarter, compared to the consensus estimate of $126.78 million. TC Pipelines had a net margin of 64.04% and a return on equity of 21.46%. analysts predict that TC Pipelines will post 3.14 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 13th. Shareholders of record on Friday, February 2nd will be given a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 7.83%. The ex-dividend date is Thursday, February 1st. TC Pipelines’s dividend payout ratio (DPR) is 129.45%.
A number of large investors have recently made changes to their positions in TCP. Wells Fargo & Company MN grew its position in TC Pipelines by 20.4% in the second quarter. Wells Fargo & Company MN now owns 43,320 shares of the pipeline company’s stock valued at $2,383,000 after acquiring an additional 7,334 shares during the period. Alliancebernstein L.P. boosted its stake in TC Pipelines by 5.9% in the second quarter. Alliancebernstein L.P. now owns 11,993 shares of the pipeline company’s stock worth $660,000 after purchasing an additional 672 shares in the last quarter. Ameriprise Financial Inc. boosted its stake in TC Pipelines by 9.7% in the second quarter. Ameriprise Financial Inc. now owns 7,761 shares of the pipeline company’s stock worth $427,000 after purchasing an additional 685 shares in the last quarter. New York State Common Retirement Fund acquired a new position in TC Pipelines in the second quarter worth $369,000. Finally, California Public Employees Retirement System boosted its stake in TC Pipelines by 5.5% in the second quarter. California Public Employees Retirement System now owns 87,900 shares of the pipeline company’s stock worth $4,835,000 after purchasing an additional 4,600 shares in the last quarter. Hedge funds and other institutional investors own 60.58% of the company’s stock.
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TC Pipelines Company Profile
TC PipeLines, LP is a master limited partnership. The Company 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. As of December 31, 2016, the Company had four pipelines and equity ownership interests in three natural gas interstate pipeline systems that are collectively designed to transport approximately 9.1 billion cubic feet per day of 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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