Atmos Energy downgraded to Neutral from Outperform at Mizuho

Mizuho downgraded Atmos Energy (ATO) to Neutral from Outperform with a price target of $164, down from $165. The firm views further multiple expansion as unlikely given the company’s “significant sector-leading premium” versus all utilities, not just its gas utility peers. Atmos can continue to convert its substantial capex plan into the high-end of its 13%-15% rate base and 6%-8% earnings annual growth targets, but an expansion of the current premium would require the company to officially raise these targets, which is unlikely in the medium-term, the analyst tells investors in a research note.