The consensus analyst price target for TC Energy has increased modestly to C$74.48, as analysts cite updated financial models and stable performance. This comes despite some recent downgrades from previously more bullish ratings.
Analyst Commentary
Recent Street research has reflected a mix of sentiment toward TC Energy, with analysts revising targets and ratings based on the company’s fundamentals and sector developments. The following summarizes the key bullish and bearish perspectives influencing the consensus outlook.
Bullish Takeaways- Bullish analysts have slightly increased price targets, citing updated financial models that reflect improved expectations for TC Energy’s core businesses.
- Revisions upward in price targets after quarterly reports highlight stable performance and the company’s resilience in the midstream sector.
- A positive outlook is supported by disciplined execution and the potential for steady growth in key operating segments.
- Bearish analysts have downgraded ratings, expressing caution about TC Energy’s ability to outperform in the near term given current valuation levels.
- Concerns have been raised over modest target reductions, particularly with regard to industry headwinds and macroeconomic uncertainties.
- Some analysts point to the lack of significant growth catalysts and question whether recent operational momentum can be sustained.
- Lowered price targets signal caution about execution risks and the ability to deliver above-average returns relative to peers.
What's in the News
- The company announced the redemption of Cumulative Redeemable First Preferred Shares, Series 11, scheduled for November 28, 2025, at $25.00 per share. Proceeds will be used to reduce indebtedness and support general corporate purposes (Key Developments).
- The company provided earnings guidance for 2025, indicating that comparable earnings per common share are expected to be lower than in 2024 but remain consistent with previous outlooks (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen slightly from CA$73.95 to CA$74.48, reflecting modest adjustments in analyst modeling.
- The Discount Rate has decreased marginally from 7.04% to 6.91%, suggesting a minor reduction in perceived investment risk.
- The Revenue Growth projection is largely unchanged, edging down from 6.31% to 6.30%.
- The Net Profit Margin forecast has increased very slightly from 23.38% to 23.38%.
- The Future P/E Ratio has decreased from 23.48x to 22.65x, indicating valuations are now somewhat lower than previously anticipated.
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