Shares of South Bow Corp (SOBO) plummeted 5.09% during Friday's intraday trading session, as investors reacted to a series of analyst reports and concerns over the company's financial outlook. The significant drop comes amid a challenging environment for the real estate sector company.

The sell-off appears to be triggered by multiple analysts maintaining their Hold ratings on South Bow Corp. Jefferies analyst Anthony Linton reiterated a Hold rating, citing declining EBITDA and narrowed 2025 guidance. Similarly, Scotiabank's Robert Hope and BMO Capital's Benjamin Pham also maintained their Hold positions on the stock, with Pham specifically pointing to a balanced risk/reward profile and high leverage as key factors in his assessment.

These cautious analyst stances, combined with the company's narrowed guidance for 2025, seem to have dampened investor sentiment. The market's reaction suggests growing concerns about South Bow Corp's future performance and financial stability, particularly in light of the challenging real estate market conditions. As the company grapples with declining EBITDA and high leverage, investors appear to be reassessing their positions, leading to the sharp decline in stock price.