TC Pipelines (TCP) Lifted to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of TC Pipelines (NYSE:TCP) from a hold rating to a buy rating in a research note published on Wednesday, Zacks.com reports. They currently have $40.00 price objective on the pipeline company’s stock.

According to Zacks, “TC PipeLines' impressive regionally-diverse portfolio of midstream assets including Northern Border, Great Lakes and PNGTS pipelines, among others, are driving the firm’s growth. The partnership is also progressing well on the back of brownfield expansion projects like Portland Xpress and Westbrook Xpress, which are likely to further buoy earnings and DCF. As it is, the firm’s long-term pipeline contracts enable it to generate 7% yielding payout, which is higher than the industry, in turn boosting investors’ confidence. Moreover, infrastructural bottlenecks in North America have boosted the demand for pipeline operators like TC PipeLines in the region, enabling the partnership to book substantial profits. As such, analysts are bullish on the stock.”

Several other equities research analysts have also recently commented on the stock. ValuEngine cut shares of TC Pipelines from a hold rating to a sell rating in a research report on Tuesday, April 16th. Barclays raised shares of TC Pipelines from an underweight rating to an equal weight rating and boosted their price target for the stock from $33.00 to $40.00 in a research report on Tuesday, April 16th. Wells Fargo & Co raised shares of TC Pipelines from a market perform rating to an outperform rating and boosted their price target for the stock from $31.00 to $38.00 in a research report on Tuesday, March 19th. JPMorgan Chase & Co. boosted their price target on shares of TC Pipelines from $35.00 to $38.00 and gave the stock an underweight rating in a research report on Monday, March 18th. Finally, Wolfe Research cut shares of TC Pipelines from a market perform rating to an underperform rating in a research report on Monday, January 7th. Five research analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the company. TC Pipelines presently has a consensus rating of Hold and a consensus price target of $39.25.

TCP opened at $35.06 on Wednesday. The firm has a market capitalization of $2.50 billion, a P/E ratio of 8.41 and a beta of 0.79. TC Pipelines has a 12 month low of $22.64 and a 12 month high of $37.94. The company has a current ratio of 1.08, a quick ratio of 0.99 and a debt-to-equity ratio of 2.96.

TC Pipelines (NYSE:TCP) last posted its quarterly earnings data on Thursday, February 21st. The pipeline company reported $1.06 EPS for the quarter, beating the consensus estimate of $0.83 by $0.23. The business had revenue of $220.00 million for the quarter. TC Pipelines had a negative net margin of 33.15% and a positive return on equity of 30.60%. As a group, equities analysts forecast that TC Pipelines will post 3.42 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 13th. Shareholders of record on Friday, May 3rd will be given a dividend of $0.65 per share. The ex-dividend date of this dividend is Thursday, May 2nd. This represents a $2.60 annualized dividend and a yield of 7.42%. TC Pipelines’s dividend payout ratio (DPR) is presently 62.20%.

A number of large investors have recently modified their holdings of the business. Energy Income Partners LLC raised its holdings in shares of TC Pipelines by 4.7% in the 4th quarter. Energy Income Partners LLC now owns 7,203,193 shares of the pipeline company’s stock valued at $231,367,000 after purchasing an additional 321,475 shares during the period. Alps Advisors Inc. raised its holdings in shares of TC Pipelines by 12.6% in the 4th quarter. Alps Advisors Inc. now owns 5,385,639 shares of the pipeline company’s stock valued at $172,987,000 after purchasing an additional 600,824 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of TC Pipelines by 3.3% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 831,798 shares of the pipeline company’s stock valued at $26,717,000 after purchasing an additional 26,577 shares during the period. Kayne Anderson Capital Advisors LP raised its holdings in shares of TC Pipelines by 14.9% in the 4th quarter. Kayne Anderson Capital Advisors LP now owns 457,557 shares of the pipeline company’s stock valued at $14,690,000 after purchasing an additional 59,400 shares during the period. Finally, Deutsche Bank AG raised its holdings 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 purchasing an additional 108,886 shares during the period. 62.68% of the stock is currently owned by hedge funds and other institutional investors.

About TC Pipelines

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.

Further Reading: Price to Earnings Ratio (PE) Basics

Get a free copy of the Zacks research report on TC Pipelines (TCP)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for TC Pipelines (NYSE:TCP)

Receive News & Ratings for TC Pipelines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TC Pipelines and related companies with MarketBeat.com's FREE daily email newsletter.