9 Best Up and Coming Canadian Stocks to Buy

7. South Bow Corporation (NYSE:SOBO)

Number of Hedge Fund Holders: 16

​South Bow Corporation (NYSE:SOBO) is one of the Best Up and Coming Canadian Stocks to Buy. Wall Street has a cautious outlook on South Bow Corporation (NYSE:SOBO) since the company posted mixed results for fiscal Q3 2025 on November 13.

​On November 20, Praneeth Satish from Wells Fargo reiterated a Sell rating on the stock, while slightly raising the price target from $24.14 to $24.85. On the same day, Jeremy Tonet from J.P. Morgan reiterated a Sell rating on the stock with a $28 price target.

​During the quarter, the company posted an EPS of $0.47, which topped estimates by $0.08. However, the revenue dropped 13.7% year-over-year to $461 million and missed estimates by $37 million. Management reported average throughput of approximately 584,000 barrels per day (bbl/d) on the Keystone Pipeline and around 703,000 bbl/d on the U.S. Gulf Coast segment.

​Analyst Praneeth Satish of Wells Fargo earlier on August 12 noted that his sell rating is due to some important factors impacting the company’s financial outlook. He noted the persistent valuation concerns despite an increase in stock price. Moreover, he highlighted that the company is trading at an EV/EBITDA multiple of 10.2x versus the sector median of 8.8x. Praneeth also highlighted potential financial impacts from the MP 171 incident, which is expected to impact the company’s financial outlook.

​Management of South Bow Corporation (NYSE:SOBO) kept its annual 2025 guidance largely unchanged, with Normalized EBITDA expected around $1.010 billion and a slight improvement in the Effective tax rate from a range of 23% – 24% to 20% – 21%.

​South Bow Corporation (NYSE:SOBO) owns and operates critical crude oil pipelines and facilities spanning Canada and the United States, primarily connecting Alberta’s oil production to US refining markets in the Midwest and Gulf Coast.