TC Pipelines (TCP) Rating Lowered to Sell at Zacks Investment Research

TC Pipelines (NYSE:TCP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “Taking into account a host of issues, we are recalibrating our investment thesis on TC PipeLines to a 'Sell'. Uncertainty over the energy infrastructure provider's dropdown prospects has meant that investor sentiment on the stock has turned tepid of late. Sponsor TransCanada's purchase of Columbia Pipeline Group and TCP's higher cost of capital is likely to limit dropdowns. As it is, the natural gas transporter is facing headwinds on its contracting efforts for the Great Lakes pipeline system. Concerns associated with the availability of natural gas supplied by Northern Border have also been a negative. Given these headwinds, we see TCP as a risky bet that ordinary investors should exit.”

A number of other equities research analysts also recently weighed in on TCP. Royal Bank of Canada reaffirmed a “buy” rating and issued a $72.00 target price on shares of TC Pipelines in a research note on Monday, October 30th. UBS Group decreased their price target on shares of TC Pipelines from $63.00 to $61.00 and set a “buy” rating on the stock in a research note on Tuesday, November 7th. Wells Fargo & Co decreased their price target on shares of TC Pipelines from $62.00 to $58.00 and set a “market perform” rating on the stock in a research note on Wednesday, November 15th. Citigroup raised shares of TC Pipelines from a “neutral” rating to a “buy” rating and set a $58.00 price target on the stock in a research note on Friday, December 8th. Finally, Bank of America assumed coverage on shares of TC Pipelines in a research note on Tuesday, January 9th. They set a “neutral” rating on the stock. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $59.75.

Shares of TC Pipelines (NYSE:TCP) traded up $0.61 on Tuesday, reaching $52.82. 93,118 shares of the company were exchanged, compared to its average volume of 174,671. The stock has a market capitalization of $3,676.44, a P/E ratio of 17.01, a P/E/G ratio of 2.77 and a beta of 0.89. The company has a debt-to-equity ratio of 2.38, a current ratio of 1.12 and a quick ratio of 1.06. TC Pipelines has a 1-year low of $48.55 and a 1-year high of $65.03.

TC Pipelines (NYSE:TCP) last announced its earnings results on Monday, November 6th. The pipeline company reported $0.61 earnings per share for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.06). The company had revenue of $100.00 million during the quarter, compared to analysts’ expectations of $126.78 million. TC Pipelines had a net margin of 64.04% and a return on equity of 21.46%. research analysts anticipate that TC Pipelines will post 3.14 EPS for the current year.

Hedge funds have recently bought and sold shares of the business. The Manufacturers Life Insurance Company grew its holdings in shares of TC Pipelines by 8.0% in the second quarter. The Manufacturers Life Insurance Company now owns 2,013 shares of the pipeline company’s stock worth $111,000 after purchasing an additional 149 shares during the last quarter. Stuart Chaussee & Associates Inc. bought a new position in shares of TC Pipelines in the fourth quarter worth approximately $152,000. Cetera Investment Advisers bought a new position in shares of TC Pipelines in the second quarter worth approximately $204,000. Wedbush Securities Inc. bought a new position in shares of TC Pipelines in the third quarter worth approximately $204,000. Finally, Mathes Company Inc. bought a new position in shares of TC Pipelines in the fourth quarter worth approximately $272,000. 60.58% of the stock is currently owned by hedge funds and other institutional investors.

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TC Pipelines Company Profile

TC PipeLines, LP is a master limited partnership. The Company acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company’s pipeline systems transport natural gas in the United States. As of December 31, 2016, the Company had four pipelines and equity ownership interests in three natural gas interstate pipeline systems that are collectively designed to transport approximately 9.1 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern and Eastern United States.

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