TC Energy's (TRP) natural gas pipelines are being favorably complemented by Ontario nuclear energy company Bruce Power's "criticality, operational efficiency, and growth opportunities," RBC Capital Markets said in a note Wednesday after attending a Bruce Power investor event.

RBC said that TC Energy's 48% stake in the company is "one of the most underappreciated assets" by investors. TC Energy's shares will likely keep outperforming amid a favorably evolving energy sector, "as the market better appreciates the value Bruce Power brings" to the company, the note said.

RBC said it sees nuclear energy as a way for countries to gain a strategic edge in economic and geopolitical terms amid shifting dynamics among superpowers. Also, nuclear technology is well placed to support demand for clean and reliable electricity amid the AI-driven revolution, the note said.

Among other favorable factors, Bruce Power's revenue model will generate long-term contracted cash flows through 2064 and the company has "little to no risks" linked to fuel costs, waste liability and demand for power, the investment firm said.

RBC has an outperform rating on TC Energy.

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