ONE Gas (OGS – Research Report), the Utilities sector company, was revisited by a Wall Street analyst on February 25. Analyst Gabe Moreen from Mizuho Securities reiterated a Hold rating on the stock and has a $77.00 price target.
Gabe Moreen’s rating is based on ONE Gas’s recent performance and future outlook. The company delivered results that aligned with expectations for the fourth quarter of 2024 and maintained its guidance for 2025 and the next five years. While ONE Gas is expected to achieve earnings per share growth at the higher end of its 4-6% compound annual growth rate through 2029, some growth is anticipated to be back-weighted, particularly due to the timing of the Oklahoma rate case.
Moreen reiterates a price target of $77, applying a 16.5x price-to-earnings multiple to the 2027 estimates, which aligns with industry peers. Although there are potential upsides from a lower interest rate environment and operational and maintenance cost disinflation, these factors lack high visibility at present. Therefore, the Hold rating reflects the belief that the current share price already accounts for the expected growth outlook.
Moreen covers the Energy sector, focusing on stocks such as Energy Transfer, Archrock, and Kinder Morgan. According to TipRanks, Moreen has an average return of 16.2% and a 79.82% success rate on recommended stocks.
In another report released on February 25, Morgan Stanley also maintained a Hold rating on the stock with a $68.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com