TransCanada downgraded at Morgan Stanley on capital inefficiencies

|About: TransCanada Corporation (TRP)|By:, SA News Editor

TransCanada (TRP +0.2%) is downgraded to Neutral from Outperform with a $58 price target at Credit Suisse, which sees poor risk-reward going into quarterly results due to declines in selected forward power markets and TRP's plan to gradually improve capital efficiencies.

Credit Suisse sees a slow procession toward improved capital efficiency, which is causing the firm to put a lower probability on more radical restructuring.

Nevertheless, the downgrade highlighted TRP's asset base as well positioned to take advantage of investment themes surrounding the Alberta oil sands, west coast LNG and low-cost generation exposure in tight power markets.