TC Energy (TRP) remains committed to reducing debt and improving its cost-of-capital spread with more favorable updates expected in the coming quarters that will help extend its 5% to 7% earnings before interest, taxes, depreciation, and amortization compound annual growth rate beyond 2027, RBC Capital Markets said in a note emailed Tuesday.

While TC Energy's Q4 results did not include major new project announcements, management signaled that updates could come soon, with about $8 billion in project spending planned between 2026 and 2030.

The company is targeting lower-risk projects, including data center-driven projects, behind-the-meter solutions, and the Bruce Power Unit 5 MCR program, RBC said.

"It appears to us that potential projects to be sanctioned include data center-driven projects that are anchored by utilities and/or direct connect, behind-the-meter solutions, as well as the Bruce Power Unit 5 MCR program," the firm said.

RBC said TC Energy's newly introduced 2025 EPS guidance suggests a decline from 2024's $3.73 per share. The firm also reduced its forecast due to expectations of reduced allowance for funds used during construction and higher interest expenses.

The brokerage raised its price target on TC Energy's stock to $74 from $71 with an outperform rating.

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