TRP

Analyst Ratings Updates: Top Wall Street analysts have initiated coverage on several companies, including Lattice Semiconductor (Buy, target $85), CeriBell (Buy, target $32), and Enbridge (Buy, target C$75), while TC Energy received a Neutral rating with a target of C$75.

Stock Performance: As of Thursday, Lattice Semiconductor shares closed at $43.06, CeriBell at $18.73, and Savers Value Village at $7.11, reflecting varying market sentiments among analysts.

Trade Tensions: President Trump's trade war is intensifying, particularly affecting Canada, which is prepared to retaliate against U.S. actions, unlike Europe that is considering concessions.

Political Landscape: Canadian Prime Minister Mark Carney has called for a snap election on April 28, presenting an opportunity for Canadians to elect a new leader as he faces Conservative Party leader Pierre Poilievre.

Call for Action from Energy CEOs: A letter from 14 CEOs of major Canadian energy companies urges federal leaders to implement a rapid regulatory overhaul to enhance Canada's economic sovereignty and energy infrastructure, addressing global energy security challenges.

Proposed Action Plan: The letter outlines five key actions needed, including simplifying regulations, committing to project approval deadlines, increasing production capacity, attracting investment by revising carbon levies, and incentivizing Indigenous co-investment opportunities.

Impact of U.S. Tariffs: TC Energy CEO François Poirier warned that U.S. tariffs on Canadian and Mexican oil and gas will increase inflation and threaten energy security, advocating for the removal of regulatory barriers instead to enhance infrastructure and LNG exports.

Market Diversification Needs: The tariffs have highlighted Canada's dependence on the U.S. market for energy exports, emphasizing the necessity for Canada to diversify its markets by expanding its LNG industry and building more pipelines to access global markets.

Strong Performance and Growth Potential: The Williams Companies has seen a stock surge of over 61% in the past year, driven by expanding natural gas infrastructure projects and record-setting demand for its Transco pipeline, while maintaining consistent dividend growth and impressive earnings momentum.

Risks and Challenges: Despite its attractive long-term investment potential, Williams faces high debt levels, project delays in deepwater assets, uncertain gathering and processing outlook, and execution risks that could impact future growth, suggesting caution for investors considering adding to their positions.

Trump's Push for Keystone XL Pipeline: Former President Donald Trump expressed his desire for the Keystone XL Pipeline to be built quickly, promising streamlined regulatory processes and urging the original company or another pipeline firm to undertake the project, which was halted by the Biden administration due to environmental concerns.

Contradictory Trade Policies: While advocating for the Keystone pipeline to increase Canadian oil imports into the U.S., Trump simultaneously threatened to impose 25% tariffs on all Canadian imports, highlighting a contradiction in his trade policies.

Trump's Support for Keystone XL Pipeline: Former President Donald Trump expressed his desire to see the Keystone XL Pipeline built, promising easy regulatory approvals and urging the company involved to return to the project after it was halted by the Biden administration.

Background on the Pipeline's Controversy: The Keystone XL Pipeline, proposed in 2008 to transport oil from Canada to U.S. refiners, faced significant opposition from environmentalists and legal challenges, leading to its permit being revoked by President Biden shortly after he took office in 2021.

TC Energy Financial Filings: TC Energy Corporation has filed its audited consolidated financial statements, annual information form, and Form 40-F for the year ended December 31, 2024, with Canadian and U.S. securities authorities.

Company Overview: TC Energy operates a vast network of natural gas infrastructure and power generation assets, providing energy solutions across North America and globally, while emphasizing the importance of forward-looking statements in their financial outlook.

Earnings Reports: Major companies such as American Axle, Enbridge, and Coca-Cola Europacific Partners are set to report earnings today, with expected stock movements indicated by options prices.

Options Trading Insights: Investors can view real-time data on expected earnings moves and options activity for these companies, but should be aware of the risks associated with options trading.

Dividend Announcement: TC Energy has announced a quarterly dividend of CAD 0.85 per share, reflecting a 3.3% increase from the previous dividend of CAD 0.82, payable on April 30 to shareholders of record by March 31.

Growth Plans: The company is planning C$1.5 billion in growth projects and anticipates higher EBITDA for 2025, alongside potential changes to its pipeline stake sale to indigenous groups.

Earnings Expectations for Energy Stocks: As the fourth-quarter earnings season begins, analysts anticipate better-than-expected results from energy companies like Permian Resources Corp., Antero Midstream Corp., and TC Energy Corp. due to a stable pricing environment and strong commodity prices.

Investment Strategies and Stock Picks: Zacks Investment Research emphasizes a proprietary methodology combining Earnings ESP and Zacks Rank to identify stocks with high potential for positive earnings surprises, highlighting that Permian Resources and TC Energy have favorable indicators ahead of their earnings announcements.

Upgrade of TC Energy: US Capital Advisors has upgraded TC Energy (TRP) from Hold to Overweight with a new price target of C$75.

Market Insights Tool: TipRanks offers a Smart Score tool to help investors identify top-performing stocks and compare their picks with Wall Street analysts' recommendations.

Energy as a Unifying Opportunity: Despite the focus on tariffs, North America has a significant opportunity to strengthen economic ties through energy collaboration, particularly in natural gas, which can enhance economies, national security, and reduce emissions.

Impact of Global Events on Energy Markets: The geopolitical landscape, especially following Russia's invasion of Ukraine, has shifted energy markets, leading to a substantial increase in U.S. liquefied natural gas exports to Europe, highlighting America's growing influence in global energy affairs.

Impact of Tariffs: President Trump's announced tariffs on imports from Canada, Mexico, and China could lead to increased prices for consumers across various sectors, including beer, automotive, avocados, smartphones, toys, clothing, construction, oil, transportation, and retail.

Market Reactions: The tariffs have prompted retaliatory measures from Canada and have caused fluctuations in stock prices for affected companies, with significant declines noted for businesses heavily reliant on imports from the targeted countries.

Utilities Sector Performance: The Utilities Select Sector SPDR Fund (XLU) has risen 26% in the past year, driven by interest in companies supporting AI and data centers, with significant gains seen in major players like Vistra Corp and Constellation Energy. Investors are now advised to be more selective in choosing utility stocks that can adapt to increasing power demands and climate considerations.

Investment Strategies: Analysts suggest focusing on integrated utilities and midcap companies for better growth potential, with recommendations for names like Exelon, PPL Corp, and Evergy, which offer attractive dividend yields. The midcap space is highlighted as having less risk and greater upside potential, with specific mentions of NiSource and WEC Energy as promising options.

Analyst Ratings and Performance: RBC Capital analyst Maurice Choy maintains a Buy rating on TC Energy with a price target of C$71.00, while Barclays also issued a Buy rating; however, Jefferies assigned a Hold rating. Choy has an average return of 8.2% and a success rate of 53.00% on his recommendations.

Financial Performance and Insider Activity: TC Energy reported a quarterly revenue of $4.08 billion and a net profit of $1.48 billion, showing significant improvement from the previous year. Despite this, corporate insider sentiment is negative, indicating increased selling of shares by insiders compared to earlier this year.

Trudeau's Resignation Impact: Prime Minister Justin Trudeau's resignation on January 6 has created a period of uncertainty for Canada, as he remains in office temporarily, leading to concerns about governance during this transition.

Political Landscape Shift: The situation favors Conservative Party leader Pierre Poilievre, who is now seen as the frontrunner for the upcoming federal election amidst challenges such as potential tariffs from the U.S. on Canadian goods.

Teleconference Announcement: TC Energy Corporation will hold a teleconference and webcast on February 14, 2025, at 6:30 a.m. MST to discuss its fourth quarter financial results, featuring key executives including the CEO and CFO.

Participation Details: Interested parties can join the call by phone or via a live webcast on TC Energy's website, with options for pre-registration and replay available after the event.

Short Sellers in Energy Sector: Short sellers in the U.S. and Canada, particularly in the energy sector, faced significant losses totaling $21.9 billion year-to-date, with the Energy Select Sector SPDR ETF and Vanguard Energy ETF rising 8% this year, leading to a $5.8 billion loss for energy short sellers.

Market Trends and Performance: Despite the losses, short interest in the energy sector increased by $4.9 billion, with 50% of energy stocks seeing more short selling and 44% experiencing short covering; however, both groups performed similarly, each down 7% for the month.

Investment Outlook for Canadian Midstream Sector: TD Cowen identifies companies with significant natural gas exposure, particularly TC Energy and Enbridge, as well-positioned for growth in the Canadian midstream sector, with Pembina Pipeline highlighted as undervalued.

Pembina Pipeline's Strong Position: Pembina Pipeline Corp is noted for its strong capital structure and competitive asset portfolio, with a target price of C$66 assigned by TD Cowen, indicating it is fundamentally mispriced despite trading below its historical valuation metrics.