South Bow initiated with an Underweight at Morgan Stanley

Morgan Stanley analyst Robert Kad initiated coverage of South Bow (SOBO) with an Underweight rating and C$36 price target The firm sees limited organic growth for the company and a multi-year process to reduce its leverage and payout ratio. The stock is likely to be priced off of current dividend yield, but “offers a defensive option in risk-off market,” the analyst tells investors in a research note.