ONE Gas, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst William Appicelli from UBS upgraded the rating on the stock to a Hold and gave it a $86.00 price target.
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William Appicelli has given his Hold rating due to a combination of factors that suggest a balanced risk/reward profile for ONE Gas. The company is experiencing an improved earnings outlook, partly due to favorable legislative changes in Texas that enhance earnings visibility and a decline in commercial paper rates, which could provide a modest financial upside.
Furthermore, ONE Gas is expected to update its financial guidance in December, with potential increases in its targeted EPS growth rate. The stock is currently trading at a slight discount to the 2027 EPS estimate, indicating that the market has already priced in these positive developments. Overall, the improved legislative and interest rate environment supports a more neutral stance, as the potential for positive earnings revisions is balanced by the current valuation.
In another report released on November 5, Stifel Nicolaus also maintained a Hold rating on the stock with a $88.00 price target.