TC Energy: Good Things Are Coming, Upgraded To Buy

Byadmin

Nov 7, 2025 #canadian corporate environment, #dmytro konovalov, #energy, #including unicredit securities, #infrastructure, #institutional, #preferreds offer lucrative yield, #recommendation

**TC Energy: Good Things Are Coming, Upgraded To Buy**
*By Dmytro Konovalov*

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**Summary**

TC Energy (TSX: TRP) has been upgraded from *Hold* to *Buy* with a new target price of $85.61, implying a 22.32% upside. The company’s growth outlook is supported by higher 2025 EBITDA guidance, expanding LNG export capacity, and surging demand from North American data centers.

Disciplined capital expenditures, ongoing deleveraging, and an impressive 25-year dividend growth streak further strengthen the investment case. Currently, TC Energy offers a dividend yield of 5.1%. Supportive monetary policies, anticipated interest rate cuts, and robust energy demand position TRP well for long-term growth despite regulatory and operational risks.

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**Investment Case**

Since my previous article, *”New TC Energy Downgraded To Hold, But Preferreds Offer Lucrative Yield,”* published on October 27, 2024, TC Energy’s shares have demonstrated resilience and promising growth potential.

The company’s 2025 EBITDA guidance has been raised, reflecting stronger-than-expected operational performance and effective capital deployment strategies. Moreover, TC Energy continues to benefit from rising LNG export volumes and growing infrastructure needs driven by North American data centers.

The company maintains a disciplined approach to capital expenditure while steadily reducing its leverage. This financial prudence underpins TC Energy’s ability to sustain its impressive dividend growth record, now extending for 25 consecutive years, with a current yield of approximately 5.1%.

Looking ahead, an accommodating monetary policy environment combined with expected interest rate cuts could reduce financing costs. Meanwhile, persistent demand for energy infrastructure in North America supports TC Energy’s long-term growth prospects. Although regulatory and operational risks remain, these are balanced by the company’s strong fundamentals and strategic positioning.

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**About the Author**

I am a seasoned investor and financial journalist with over twenty years of experience in sell-side equity research, corporate and project finance, M&A, and valuations, with a focus on Canadian electric utilities and infrastructure sectors.

Prior to writing, I worked for a decade as an equity research analyst at global banks such as UniCredit Securities and HSBC Global Markets, where I was top-rated in the Institutional Investor and Extel surveys. My responsibilities included strategic and economic analysis of capital markets.

Before my investment banking career, I spent ten years in a Canadian corporate environment working on the development and finance of power projects and M&A transactions.

As an active investor, I believe in actionable ideas, compelling investment stories, and clear arguments, which I aim to share to contribute towards a smarter and richer world.

In addition to contributing to Seeking Alpha, I publish short actionable investing notes and portfolio revisions on my Substack: *Dmytro Konovalov*.

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**Analyst’s Disclosure**

I/we have a beneficial long position in the shares of TRP (TSX: TRP) through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.

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**Seeking Alpha’s Disclosure**

Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole.

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