South Bow Corp (SOBO) experienced a significant downturn in intraday trading, with its stock plummeting 5.09%. The sharp decline comes in the wake of multiple analyst reports maintaining a "Hold" rating on the company, citing concerns over declining EBITDA and narrowed guidance for 2025.
Jefferies analyst Anthony Linton reiterated a Hold rating on South Bow Corp, pointing to the company's declining EBITDA and a narrowed outlook for 2025. This sentiment was echoed by Robert Hope from Scotiabank and Benjamin Pham from BMO Capital, both of whom also maintained their Hold ratings on the stock.
The confluence of these neutral-to-cautious analyst perspectives, coupled with the company's narrowed guidance, appears to have dampened investor enthusiasm. The real estate sector company's high leverage, as noted by analysts, may also be contributing to investor concerns in the current economic climate. As South Bow Corp navigates these challenges, investors will be closely monitoring the company's performance and any potential strategic shifts to address the declining EBITDA and leverage issues.