NEW YORK (TheStreet) -- Shares of TransCanada Corp. (TRP) are down slightly in early morning trade as the company faces a new regulatory hurdle and potentially more legal challenges in its effort to build the Keystone XL pipeline, the Financial Post reports.
The company now has to recertify the Alberta-to-Nebraska conduit where it passes through South Dakota.
The state approved the project in June 2010, and while the permit has not expired, TransCanada needs to "certify that the conditions placed upon the pipeline" by the regulator South Dakota Public Utilities Commission (PUC) are all still valid and that the company will meet all of those conditions, the Post said.
TheStreet Ratings team rates TRANSCANADA CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRANSCANADA CORP (TRP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."