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UPDATE: Bank of America Downgrades Northwest Natural Gas to Underperform on Valuation

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Bank of America reduced its rating on Northwest Natural Gas (NYSE: NWN) from Neutral to Underperform but maintained its price objective at $45 a share.

Bank of America commented, "We are downgrading NWN to Underperform for the following reasons: 1) view valuation as stretched given NWN is currently trading at a ~11% 2014 P/E multiple premium over peers, 2) natural gas storage fundamentals remain muted due to sustained low natural gas prices, volatility, and summer-winter spreads, which have suppressed lease rates, 3) uncertainty around its ongoing Oregon (OR) general rate case, 4) longer term pipeline projects remain unclear, and 5) LDC sector trading at a ~19% premium versus historical averages, which cast further doubt on multiple expansion, in our view."

Northwest Natural Gas closed at $47.29 on Friday.

Latest Ratings for NWN

DateFirmActionFromTo
Sep 2020Wells FargoUpgradesUnderweightEqual-Weight
Sep 2020B of A SecuritiesMaintainsUnderperform
Jul 2020UBSUpgradesSellNeutral

View More Analyst Ratings for NWN
View the Latest Analyst Ratings

 

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