UPDATE: Bank of America Raises PO to $38 on Atmos Energy on FQ3 Beat
Bank of America reiterated its Buy rating on Atmos Energy (NYSE: ATO) 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.
Latest Ratings for ATO
|Oct 2014||JP Morgan||Upgrades||Neutral||Overweight|
|Aug 2014||Edward Jones||Upgrades||Hold||Buy|
|Jul 2014||JP Morgan||Maintains||Neutral|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.