Join        Login             Stock Quote

CIBC Downgrades TransCanada (TRP) To 'Sector Performer', Says Q1 Softness To Impact Year

 April 30, 2012 09:51 AM

(By Balachander) TransCanada Corp. (TSX:TRP.TO) (NYSE: TRP) shares were downgraded to "Sector Performer" from "Sector Outperformer" by CIBC World Markets analyst Paul Lechem, given few short-term catalysts and lower earnings forecast.

The analyst noted that TransCanada reported first-quarter EPS of $0.52, slightly below his $0.53/consensus $0.54 estimates, and down y/y vs. $0.61. The main issues were lower natural gas volumes through the U.S. pipelines, no incentive earnings on the Mainline, lower power prices, and the ongoing planned outage at Bruce, he said.

"These issues should persist through 2012, with natural gas volumes and power prices expected to remain relatively soft. The Bruce refurbishment should be completed by late-Q2/12 (Unit 2)/mid-Q3/12 (Unit 1), but could have a material impact on earnings until fully back in service," Lechem wrote in a note.

[Related -An Investor's Guide To The Keystone XL Pipeline Saga]

Lechem, who trimmed price target on the stock to $45 from $46, lowered 2012 EPS estimate for the company to $2.21 from $2.34 and 2013 EPS estimate to $2.36 from $2.45.

TransCanada is a North American energy infrastructure company operating in natural gas pipelines, oil pipelines and energy segments.

TRP.TO fell 0.44 percent to trade at $43.00 on the Toronto Stock Exchange. The stock fell 1.02 percent to trade at $43.61 on the NYSE on Monday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Ten Pipeline Stocks To Watch In 2013
More Articles on: Oils/Energy

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.