Research Alert: CFRA Keeps Hold Opinion On Shares Of Tc Energy
05:55 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $56, raised $9, reflects an 11x multiple of enterprise value to projected '22 EBITDA, slightly below TRP's historical forward average. We lift our '21 EPS estimate by C$0.03 to C$4.20 and '22's by C$0.02 to C$4.40. TRP posts Q1 operating EPS of C$1.16 vs. C$1.18, beating the consensus view by C$0.05. TRP's U.S. natural gas business moved 29 trillion cubic feet of gas in Q1, up 4% versus the year-ago quarter. TRP has C$20 billion in projects at various stages of development, including C$4.1 billion that it expects to complete in '21. More than 80% of this backlog is tied to natural gas pipelines, and about 85% of this book of business is rate-regulated, which we think provides strong visibility. TRP shares yield 5.6%, adding to total return potential. TRP is moving on from the regulatory defeat of the former Keystone XL project, and with much of the backlog tied to in-corridor projects, we think the risk profile is improved.