Southwest Gas upgraded to Buy from Hold at Jefferies

Jefferies upgraded Southwest Gas (SWX) to Buy from Hold with a price target of $82, up from $74. Arizona’s System Integrity Mechanism settlement creates “immediate value” through annual recovery of 40% of infrastructure capital spending in the state starting in April 2026, while Nevada’s newly signed SB 417 “lays the foundation for the implementation of formula rates,” according to the analyst, who argues that this regulatory momentum accelerates Southwest’s earnings power beyond Street expectations.