ET - TC Energy cut to Sell equivalent at Morgan Stanley after strong YTD rise

TC Energy (NYSE:TRP) -1.6% in Tuesday's trading as Morgan Stanley downgraded shares to Underweight from Equal Weight with a C$78 price target on relative valuation, after rising nearly 20% so far this year. Analyst Robert Kad praises TC Energy's (TRP) quality of assets and proactive energy transition strategy, but the stock's YTD performance and resulting valuation "leave implied upside in our unlevered [discounted cash flow] analysis more consistent with Underweight-rated names at present." Morgan Stanley expects a solid set of Q1 earnings results from the MLP and midstream sector, with conditions set to sustain strong performances in 2022 for Overweight-rated Energy Transfer (ET), Targa Resources (TRGP), Western Midstream Partners (WES) and Plains All American Pipeline (PAA) (PAGP). The firm foresees a strong quarter from Williams (NYSE:WMB), which should benefit from a number of contractual commodity tailwinds; Williams (WMB) should benefit from higher EBITDA/mcf on its rich gas acreage in the northeast

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TC Energy cut to Sell equivalent at Morgan Stanley after strong YTD rise