Transportadora de Gas del Sur SA (ADR) (TGS) PT Raised to $44 at BofA Securities

BofA Securities analyst Gustavo Faria raised the price target on Transportadora de Gas del Sur SA (ADR) (NYSE: TGS) to $44.00 (from $39.00) while maintaining a Buy rating.

The analyst commented, "Yesterday, TGS confirmed its plan to begin the development of its US$3.0bn transformational project for Argentina’s largest NGL plant by 2030. We welcome the announcement as it: 1) validates TGS’s main growth catalyst project (see TGS Connects the Dots) and 2) reinforces our core thesis on TGS’s ongoing NPV growth strengthening the de-risking path toward higher USD-linked EBITDA (>70% BofAe in 2030 vs. ~50% current). We reiterate Buy and incorporate the project into our base-case, adding +12% NPV (or +US$4.5/sh), as we set a US$44 PO (from US$39), implying 40% potential upside."

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