Jefferies Upgrades National Fuel Gas (NFG) to Buy; Added to Franchise Picks List

Jefferies upgraded National Fuel Gas (NYSE: NFG) from Hold to Buy with a price target of $67 (from $60) and added the stock to the Franchise Picks List.

Analyst Christopher Sighinolfi commented, "We are upgrading NFG to Buy, from Hold, and lifting our Sum-of-the-Parts (SOP) derived price target to $67, from $60, due to a roll-forward to F2018 financial expectations & the incorporation of Northern Access-related growth; we also note that shares are off ~10% in the last month in sympathy with broader utility-sector weakness. Despite a recent uptick in political opposition to new energy pipelines (see below), we believe NFG’s Northern Access project stands a good chance of securing the necessary approvals for its Nov. 2017 planned in-service & believe it will significantly advance the company’s value proposition. In particular, we note that N. Access is, in part, designed to bring low-cost PA natural gas into NY state for the benefit of greater Buffalo utility customers, it is being constructed by a NY-based company, ~80% of its route traverses existing utility corridors, and nearly all of its proposed route has been secured. While NY political opposition to hydrocarbon development remains, we believe this particular project offers attributes to be supported."

For an analyst ratings summary and ratings history on National Fuel Gas click here. For more ratings news on National Fuel Gas click here.

Shares of National Fuel Gas closed at $52.75 yesterday.

You May Also Be Interested In

• Jefferies Upgrades Husqvarna AB (HUSQB:SS) to Buy
• Stifel Downgrades Knight Transportation (KNX) to Hold
• Morgan Stanley Downgrades Envista Holdings Corp. (NVST) to Equalweight