SOBO

South Bow: Nice Company, Solid Assets, But Wrong Time To Buy

South Bow Corporation (SOBO) owns critical oil pipeline infrastructure, notably Keystone, linking Canadian crude to U.S. markets with 95% capacity utilization. SOBO's assets are mature, secured by long-term contracts, and offer inflation-linked growth, but limited organic expansion prospects. Shares have surged ~40% in a year, outpacing distributable cash flow growth (~20%), resulting in a valuation just above 10x 2026 DCF.