The Silver Lining for ONE Gas
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ONE Gas (NYSE:OGS) surged 2.1% during Tuesday’s trading session following an upgrade from Ladenburg Thalmann. The investment firm raised its rating on the stock from Neutral to Buy and set a price target of $64.50. Ladenburg cited the potential for increased earned returns, driven by frequent rate filings, as the catalyst for its optimistic outlook on the company.
The upgrade by Ladenburg signifies a newfound confidence in ONE Gas’s ability to achieve its targeted EPS growth of 4%-6%.
An Analytical Rear View
When ONE Gas (OGS) was initially covered by Ladenburg’s Paul Fremont on February 14, the analysis factored in short-term debt, which led to a deduction of $6.50 from the price target. However, the firm overlooked the impact of utility price targeting with the after-tax interest drag. Upon rectifying this miscalculation, Ladenburg’s price target received a significant boost of $3.40.
Looking Ahead: Earnings Projections
Ladenburg’s earnings projection for 2026 is based on an estimated 4.9% EPS growth derived from the midpoint of the original 2023 guidance. This growth forecast aligns closely with the mid-point of ONE Gas’s targeted earnings range, indicating a harmonious trajectory for the company.
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