National Bank Financial on Friday maintained its outperform rating on the shares of TC Energy (TRP.TO, TRP) while raising its price target to C$70.00 from C$60.00 following third-quarter results from the pipeline and power company.

"With up to 40 bcf/d gas demand growth across North America by 2035, TRP highlighted ~13 bcf/d of growth opportunities across its pure play gas infrastructure asset base - i.e., high visibility towards deploying $6-$7 bln of capital annually. Meanwhile, based on the Southeast Gateway pipeline's projected cost being revised down to US$3.9-US$4.1 bln (from US$4.5 bln), in conjunction with EBITDA strength, TRP confirmed its 4.75x leverage target can be met and sustained without the need for further asset sales. As such, removing $3.5 bln of divestiture assumptions from our model along with refreshing our segmented valuation multiples within our SOTP valuation, our target jumps $10 to $70 and we maintain our OP rating pending the company's Investor Day update on Nov. 19th and further details surrounding its highly executable, highly accretive growth backlog, as well as capital efficiency and cost optimization initiatives," analyst Patrick Kenny wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 67.78, Change: -1.05, Percent Change: -1.53