Atmos Energy initiated with a Hold at Jefferies

Jefferies initiated coverage of Atmos Energy with a Hold rating and $155 price target The firm says its annual earnings growth estimate of 7.2% through 2028 is above the Street’s 6.3% and the company’s 7.0% guidance midpoint. This is backed by a modeled 12% rate base growth and steady regulation, signaling sustained medium-term outperformance versus the company’s gas peers, the analyst tells investors in a research note. However, Jefferies cites Atmos Energy’s “current sector-high premium” valuation, its growing bill inflation as well as cash taxpayer headwinds by 2026 for the Hold rating.