UPDATE: Bank of America Raises PO to $38 on Atmos Energy on FQ3 Beat

Bank of America reiterated its Buy rating on Atmos Energy

and raised its price objective from $37 to $38. Bank of America noted, "We are boosting our PO slightly to $38 (from $37) based on a 14.5x (up from 14x) multiple on our 2014E EPS of $2.65. We think ATO's valuation discount to peers should continue to narrow as ATO executes on its plans for rate base growth at an 8-8.5% CAGR through 2016. We also view recent asset sales as proof that ATO's acquisitive days are behind it, which is also supportive of a higher valuation, in our view." Atmos Energy closed at $35.20 on Wednesday.