BofA Securities Downgrades Atmos Energy (ATO) to Neutral, 'a pricey one'

BofA Securities analyst Ross Fowler downgraded Atmos Energy (NYSE: ATO) from Buy to Neutral with a price target of $185.00 (from $182.00).

The analyst comments "We are downgrading shares of Atmos Energy (ATO) to Neutral from Buy, based on the 22% premium valuation to local gas distribution company (LDC) Peers, which we believe prices in the large growth opportunity ahead. We expect incremental capex could be needed to support economic/data center development in Texas (TX) and while these opportunities are positive, we do not believe they will drive near term earnings growth materially higher than current Street expectations. We update our FY25/26/27 EPS estimates to $7.41/ $7.95/$8.60 vs. $7.30/$7.83/$8.52 prior, after adjusting our estimates for the impact of TX House Bill (HB) 4384 that became effective 6/25. Our EPS estimates reflect a ~8.4% EPS CAGR, slightly above mgmt.’s 6%-8% guide."

For an analyst ratings summary and ratings history on Atmos Energy click here. For more ratings news on Atmos Energy click here.

Shares of Atmos Energy closed at $179.19 yesterday.

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