TC Pipelines (TCP) Cut to Hold at Zacks Investment Research
According to Zacks, “Well positioned to take advantage of the nation's natural gas supply growth, TC PipeLines boasts of a stable, recurring and low-risk earnings and cash flow model, with interests in key gas transportation assets. In particular, TC Pipelines’ enviable position as a supplier of gas from some of the most important shale basins in the United States provides it with ample growth opportunities. TCP also continues to benefit from its stake in the Northern Border Pipeline, the primary transporter of gas from the low-cost Western Canada Sedimentary Basin. A victim of the FERC's revised tax policy, the energy infrastructure provider has been hit hard after indicating lower cash flows as a result of the move. That said, the biggest near-term threat to TC PipeLines is the concern about fewer opportunities for dropdown transactions from sponsor TransCanada. As such, the partnership warrants a cautious stance.”
Several other research firms have also recently weighed in on TCP. ValuEngine raised TC Pipelines from a sell rating to a hold rating in a research note on Monday, March 25th. Barclays raised TC Pipelines from an underweight rating to an equal weight rating and lifted their target price for the company from $33.00 to $40.00 in a research note on Tuesday, April 16th. Wells Fargo & Co raised TC Pipelines from a market perform rating to an outperform rating and lifted their target price for the company from $31.00 to $38.00 in a research note on Tuesday, March 19th. JPMorgan Chase & Co. lifted their target price on TC Pipelines from $35.00 to $38.00 and gave the company an underweight rating in a research note on Monday, March 18th. Finally, Wolfe Research cut TC Pipelines from a market perform rating to an underperform rating in a research note on Monday, January 7th. Five investment analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $39.38.
TC Pipelines (NYSE:TCP) last released its earnings results on Thursday, February 21st. The pipeline company reported $1.06 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.83 by $0.23. TC Pipelines had a positive return on equity of 30.60% and a negative net margin of 33.15%. The company had revenue of $220.00 million for the quarter. As a group, equities analysts forecast that TC Pipelines will post 3.42 earnings per share for the current fiscal year.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Truvestments Capital LLC bought a new stake in shares of TC Pipelines in the 1st quarter valued at approximately $37,000. Deutsche Bank AG grew its stake in shares of TC Pipelines by 42.1% in the 4th quarter. Deutsche Bank AG now owns 367,734 shares of the pipeline company’s stock valued at $11,810,000 after buying an additional 108,886 shares in the last quarter. Advisory Services Network LLC grew its stake in shares of TC Pipelines by 173.3% in the 4th quarter. Advisory Services Network LLC now owns 2,050 shares of the pipeline company’s stock valued at $66,000 after buying an additional 1,300 shares in the last quarter. Municipal Employees Retirement System of Michigan bought a new stake in shares of TC Pipelines in the 4th quarter valued at approximately $6,671,000. Finally, Edge Capital Group LLC bought a new stake in shares of TC Pipelines in the 4th quarter valued at approximately $225,000. 62.69% of the stock is owned by institutional investors and hedge funds.
TC Pipelines Company Profile
TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The company has interests in eight natural gas interstate pipeline systems that transport approximately 10.8 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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