UPDATE: Wunderlich Securities Reiterates On Gas Natural As Positive Trends Continue

In a report published Monday, Wunderlich Securities analyst Mike Bates reiterated a Hold rating on

, and raised the price target from $10.50 to $11.00. In the report, Wunderlich Securities noted, “We are increasing our estimates and price target for Gas Natural (EGAS) to reflect moderately better customer growth trends than previously expected, partially offset by higher recurring parent company expenses and lower gross margin from Marketing and Production. Earnings from potential bolt-on LDC acquisitions represent potential for upside relative to our current forecast, but visibility around such opportunities remains low. "While the shares will trade at a discount to reflect above-average regulatory risk until PUCO's investigation is closed, we are increasing our price target to $11 to reflect favorable trends in the utility group, in addition to continued progress in restoring credibility with regulators.” Gas Natural closed on Friday at $10.27.