Atmos Energy Bears The Brunt Of O&M Inflation, Analyst Projects FY24 EPS At Lower End Of 6%-8% Growth Target
Portfolio Pulse from Nabaparna Bhattacharya
Mizuho analyst Gabriel Moreen has reiterated a Buy rating on Atmos Energy Corporation (NYSE:ATO), but lowered the price target to $131 from $137 due to industry headwinds. The EPS estimate for FY24 is $6.42/share, implying a 6.1% growth, which is at the lower end of ATO's 6%-8% growth target. This is primarily due to sustained exogenous headwinds, particularly O&M inflation. ATO shares are trading higher by 0.70% to $111.58.
October 11, 2023 | 7:12 pm
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Mizuho analyst has lowered the price target for Atmos Energy Corporation (ATO) due to industry headwinds. The EPS estimate for FY24 implies a 6.1% growth, which is at the lower end of ATO's growth target.
The lowered price target and EPS estimate for FY24 at the lower end of ATO's growth target due to industry headwinds might create uncertainty among investors. However, the stock is currently trading higher, indicating a positive market sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100