UBS analyst William Appicelli raised Atmos Energy's (ATO) price target to $159, up 8.90% from $146. The rating remains "Neutral". The average target price among 10 analysts is $163.35, with a high estimate of $182 and a low of $146. The estimated GF Value for ATO in one year is $126.44, suggesting a downside of 19.46% from the current price.
UBS analyst William Appicelli recently raised Atmos Energy's (ATO) price target to $159, marking an 8.90% increase from the previous target of $146. The rating remains "Neutral" [1]. The average price target among 10 analysts stands at $163.35, with a high estimate of $182 and a low of $146. The estimated GF Value for ATO in one year is $126.44, suggesting a downside of 19.46% from the current price.
The latest upgrade by UBS follows a series of recent analyst actions. Morgan Stanley analyst Stephen Byrd maintains a 'Buy' rating with a price target of $158.00, while Bank of America (BofA) upgraded ATO's price target from $165 to $182, also maintaining a 'Buy' rating [2]. Analysts' consensus reflects Atmos Energy's strong fundamentals, including consistent growth, reliable cash flows, and a solid investment pipeline.
However, investors should remain vigilant to potential risks. Atmos Energy's high net debt/EBITDA ratio and ongoing capital spending program pose challenges. Additionally, regulatory outcomes, such as decisions by the Texas Railroad Commission and Kentucky Public Service Commission, could impact future revenues [3].
In conclusion, the upgrades in Atmos Energy's price target by UBS and other analysts reflect the company's robust performance and favorable outlook. However, investors should closely monitor potential risks and regulatory developments.
References:
[1] https://www.ainvest.com/news/morgan-stanley-maintains-buy-rating-atmos-energy-158-price-target-2507/
[2] https://www.benzinga.com/insights/analyst-ratings/25/07/46741852/forecasting-the-future-5-analyst-projections-for-atmos-energy
[3] https://finimize.com/content/ato-asset-snapshot
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