Analysts have raised their price target for TC Energy, reflecting an increase from C$74.48 to C$75.48 per share. Recent updates to midstream sector models and profit margin forecasts support a moderately higher fair value.
Analyst Commentary
Recent street research on TC Energy shows a mix of optimism and caution among analysts regarding the company’s valuation, outlook, and execution. The following summarizes the key bullish and bearish analyst perspectives:
Bullish Takeaways- Bullish analysts have raised price targets, reflecting confidence in TC Energy’s ability to deliver modest upside in share value.
- Increases in target prices are supported by updated financial models, which indicate improved profitability and stable margin forecasts.
- There remains positive sentiment on the company’s execution within the midstream sector, particularly after updated earnings and operating results.
- Some bearish analysts have shifted to a more cautious stance, citing limited near-term growth potential despite recent target increases.
- Downgrades point to concerns over the sustainability of outperforming the sector, as well as ongoing execution risks.
- Valuation is noted as incrementally less attractive, with price targets reflecting expectations of only moderate appreciation moving forward.
What's in the News
- TC Energy will redeem all issued and outstanding Cumulative Redeemable First Preferred Shares, Series 11, on November 28, 2025, at $25.00 per share. The proceeds will be used to reduce indebtedness and for corporate purposes (Key Developments).
- Notice of redemption was provided to the sole registered holder in accordance with the Series 11 terms on October 9, 2025. After the redemption, the Series 11 Shares will be delisted from the Toronto Stock Exchange (Key Developments).
- The related notes were issued with an October 6, 2025, prospectus supplement as part of a registration statement filed with the U.S. Securities and Exchange Commission (Key Developments).
Valuation Changes
- The Fair Value Estimate has increased slightly from CA$74.48 to CA$75.48 per share, reflecting a moderate rise in long-term expectations.
- The Discount Rate moved up from 6.91% to 6.94%, indicating a marginally higher required return in updated models.
- The Revenue Growth Forecast has decreased modestly, shifting from 6.30% to 6.16%.
- The Net Profit Margin is forecast to improve from 23.38% to 23.93%, pointing to stronger profitability assumptions.
- The Future Price-to-Earnings (P/E) Ratio decreased slightly from 22.65x to 22.54x, suggesting a marginal reduction in expected valuation multiples.
Have other thoughts on TC Energy?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.