The LNG Canada industrial energy project is seen under construction in Kitimat, B.C., on Wednesday, September 28, 2022. THE CANADIAN PRESS\/Darryl Dyck \u00b7 The Canadian Press <\/p>\n
TC Energy (TRP.TO)<\/a>(TRP<\/a>) stock has received a pair of analyst upgrades praising the pipeline-focused company\u2019s new three-year profit outlook. On Thursday, TC Energy executives called for adjusted annual EBITDA growth of between five and seven per cent through 2028, backed by a steady stream of new projects.<\/p>\n Chief executive officer Fran\u00e7ois Poirier says demand is so brisk that utility customers are asking company engineers to upsize their project plans before shovels hit the dirt. Calgary-based TC Energy reported financial results for the three months ended Sept. 30 before Thursday\u2019s opening bell<\/a>.<\/p>\n \u201cDemand is increasing so quickly that our utility customers are looking to increase the scope of our projects, and we just have to go back to the drawing board a little bit,\u201d Poirier said on the company\u2019s post-earnings conference call.<\/p>\n TC Energy expects to place $8.2 billion worth of projects into service by the end of the year, driven by the strong natural gas flows throughout North America. Over the past year, the company says it sanctioned over $5 billion in new growth projects spanning its natural gas and power portfolio.<\/p>\n “Projects are getting bigger and more complex,” chief financial officer Sean O\u2019Donnell added on TC\u2019s earnings call.<\/p>\n BMO Capital Markets and CIBC Capital Markets separately upgraded TC Energy shares on Thursday. Toronto-listed shares closed 2.79 per cent higher on Friday at $73.26. The stock is up roughly nine per cent year-to-date.<\/p>\n \u201cTRP has successfully sustained a growth flywheel generating increasing returns that should result in a compounded positive benefit on TRP shares and valuation,\u201d BMO analyst Ben Pham wrote in a note to clients.<\/p>\n He upgraded TC Energy\u2019s Toronto-listed stock to \u201coutperform\u201d from \u201cmarket perform,\u201d while boosting his price target to $83 per share from $73.<\/p>\n \u201cThis is supported by solid project execution, a self-funded balance sheet, and well-positioned nat gas pipe and nuclear power footprint,\u201d Pham added. \u201cAs such, we believe TRP shares deserve a significant premium valuation over pipeline peers.\u201d<\/p>\n CIBC\u2019s Robert Catellier upgraded the stock to \u201coutperformer\u201d from \u201cneutral,\u201d while adding $1 to his previous price target of $77 per share.<\/p>\n \u201cWith a robust set of opportunities through the end of the decade, combined with the company\u2019s continued project execution, we believe TRP has potential upside to its medium-term targets,\u201d he wrote in a research note.<\/p>\n Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist<\/a>.<\/p>\n Download the Yahoo Finance app, available for Apple<\/a> and Android<\/a>.<\/p>\n