Atmos Energy (ATO) Sees Price Target Boosted by BofA to $182, Maintaining Buy Rating

Atmos Energy's (ATO) price target has been upgraded by BofA from $165 to $182, with a Buy rating maintained. The firm has also revised its EPS projection for FY25 from $7.23 to $7.30. Analysts' one-year price targets average $161.45, implying a 2.78% upside from the current price. The company has reported a year-to-date net income of $837 million and updated its earnings per share guidance to $7.20 to $7.30 for FY25.

Atmos Energy (ATO) has seen a significant upgrade in its price target by Bank of America (BofA), moving from $165 to $182, with a 'Buy' rating maintained. The firm has also revised its earnings per share (EPS) projection for fiscal year 2025 (FY25) from $7.23 to $7.30. Analysts' one-year price targets average $161.45, suggesting a 2.78% upside from the current price. The company has reported a year-to-date net income of $837 million and updated its earnings per share guidance to $7.20 to $7.30 for FY25.

BofA analysts cited Atmos Energy's strong fundamentals, including consistent growth, robust dividend history, and a solid investment pipeline, as reasons for the upgrade. The analysts also noted the company's ability to generate reliable cash flows and its favorable regulatory environment. The upgrade comes amidst a period of market volatility and increased investor interest in defensive stocks.

Atmos Energy's strong performance is evident in its year-to-date return of 12.5%, outpacing the Utilities sector average of 10.1%. The company's stock has also seen a significant increase in analyst consensus, with the Zacks Consensus Estimate for ATO's full-year earnings moving 0.9% higher within the past quarter [1].

Looking ahead, Atmos Energy is expected to report its Q3 earnings after the markets close on August 6, 2025. Analysts expect an adjusted EPS of $1.19, up 10.2% from the year-ago quarter [2]. The company has a history of surpassing bottom-line expectations and has seen its stock price soar 24.6% over the past 52 weeks.

Investors should closely monitor Atmos Energy's regulatory outcomes, including decisions by the Texas Railroad Commission and Kentucky Public Service Commission, which could impact future revenues. Additionally, the company's high net debt/EBITDA ratio and ongoing capital spending program pose risks that investors should consider [3].

In conclusion, the upgrade in Atmos Energy's price target by BofA reflects the company's strong fundamentals and favorable outlook. However, investors should remain vigilant to potential risks and regulatory developments.

References:
[1] https://finance.yahoo.com/news/utilities-stocks-lagging-atmos-energy-134004994.html
[2] https://www.ainvest.com/news/analysts-expect-atmos-energy-report-q3-eps-1-19-10-2-yoy-2507/
[3] https://finimize.com/content/ato-asset-snapshot