TransCanada (TRP-T) Industrial Alliance Securities analyst Naji Baydoun advises investors to "never let a crisis go to waste." Mr. Baydoun upgraded TC Energy to "buy" from "hold."
Mr. Baydoun, however, trimmed his share target to $65 from $75. Analysts on average target the shares at $74.15.
Mr. Baydoun says in a note: "TRP offers investors a combination of (1) stable earnings and cash flows (95 per cent regulated/contracted EBITDA), with an emphasis on gas infrastructure assets (70 per cent of EBITDA), (2) sustainable organic growth (5-7 per cent per year DCF [discounted cash flow] per share growth, CAGR [compound annual growth rate] 2019-24), driven by $30-billion of secured investment (2019-23), (3) significant potential upside from more than $20-billion of longer-term development (e.g., KXL), and (4) attractive income characteristics (6.5-per-cent yield and 8-10 per cent per year DPS growth through 2021, 5-7 per cent per year thereafter).
Given the upside to our price target, we are upgrading TRP." |
