One Gas price target raised to $82 from $80 at Wells Fargo

Wells Fargo raised the firm’s price target on One Gas to $82 from $80 and keeps an Overweight rating on the shares ahead of the busy Q3/EEI season. The firm does not expect a meaningful Q3 update for One Gas, but a comprehensive refresh is likely in late November/early December. While challenges persist in light of One Gas’ historical test years and unrecoverable commercial paper balance, Wells thinks the lion’s share of the headwinds have already been absorbed and the forward trajectory should be improving. As such, it expects One Gas to increase the EPS growth target to 5%-7% from 4%-6%.