Atmos Energy, the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Ross Fowler from Bank of America Securities reiterated a Hold rating on the stock and has a $185.00 price target.
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Ross Fowler has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing Atmos Energy. The company reported strong financial performance for the fourth quarter of 2025, with adjusted earnings per share exceeding expectations, driven by rate relief, customer growth, and increased capacity in its Pipeline & Storage segment. However, these positive results were partially offset by higher depreciation, property taxes, and compliance-related operating expenses.
Despite Atmos Energy’s robust earnings and a strong balance sheet, the stock is trading at a significant premium compared to its peers, which tempers the enthusiasm for a more bullish rating. The company’s guidance for fiscal year 2026 suggests continued growth, but the focus will remain on regulatory developments, capital expenditures, and the company’s ability to manage operational costs and financing strategies effectively. These factors contribute to the decision to maintain a Neutral, or Hold, rating on the stock.