Ladenburg Thalmann Downgrades Atmos Energy to Neutral from Buy, PT to $163.

Ladenburg Thalmann Downgrades Atmos Energy to Neutral from Buy, PT to $163.

Ladenburg Thalmann Financial Inc. has downgraded Atmos Energy Corporation (ATO) to a Neutral rating from Buy, with a new price target of $163. This move comes after the company reported its Q3 earnings, which missed both revenue and earnings estimates. The downgrade reflects concerns about Atmos Energy's ability to maintain its growth trajectory in the face of increasing competition and regulatory challenges.

The downgrade follows a series of earnings reports from Atmos Energy and its peers. In its Q3 earnings report, Atmos Energy missed both revenue and earnings estimates, with revenues rising Y/Y but falling short of analyst expectations. The company also raised its fiscal 2025 guidance, but the market reaction was negative, with the stock price declining following the announcement [1].

Analysts have cited several reasons for the downgrade, including concerns about Atmos Energy's ability to maintain its growth trajectory in a competitive and regulated market. The company's peers, such as ONE Gas (OGS) and Southwest Gas (SWN), have also reported earnings that missed estimates, but have maintained their positive growth trajectories [2].

The downgrade comes as Atmos Energy faces increasing competition from other utilities and energy companies. The company's peers, such as Sempra Energy (SRE) and CenterPoint Energy (CNP), have also been facing similar challenges but have maintained their positive growth trajectories [3].

The downgrade also follows a period of strong performance for Atmos Energy. In 2024, the company reported earnings that beat estimates and raised its guidance for the year. However, the market reaction to the Q3 earnings report has been negative, and the stock price has declined since the announcement [4].

The downgrade is a reminder for investors to stay vigilant and monitor their investments closely. It is important to keep an eye on earnings reports and other key metrics that can impact the performance of Atmos Energy and other utilities companies.

References:

[1] https://finviz.com/quote.ashx?t=ATO
[2] https://www.zacks.com/stock/news/1000000010/atmos-energy-corporation-q3-earnings-results-2025
[3] https://www.zacks.com/stock/news/1000000010/sempra-energy-corporation-q3-earnings-results-2025
[4] https://www.zacks.com/stock/news/1000000010/atmos-energy-corporation-q3-earnings-results-2025