Jul. 23 at 10:04 AM
Read my latest article on
$SOBO and why I believe it’s a hold at its current valuation, here’s a summary:
South Bow Corporation operates critical oil pipeline infrastructure connecting Canadian crude to US markets, supporting essential economic functions.
I rate SOBO as a hold due to modest revenue growth, a high P/B of 2.92, and a 5.35% dividend yield, despite robust free cash flow.
SOBO's Keystone Pipeline System drives 85% of revenue, with segment growth offset by sharp declines in Marketing due to risk management losses.
Geopolitical tensions and oil price volatility present both potential tailwinds and risks, but current valuation and near-52-week highs limit upside.
https://seekingalpha.com/article/4924527-south-bow-corporation-hold-on-to-this-energy-infrastructure-company-fueling-the-economy
