J.P.Morgan sees Atmos Energy as overvalued, downgrades to 'neutral'
ATO•Valuation seen as rich versus peers
The brokerage says the stock is at an 8% premium versus peers considering 2028 earnings estimates; lack of AI-driven growth is also expected to limit upside.
ATO is trading at 18.3 times 12-month forward earnings, above the industry median of 15.5 — LSEG-compiled data.
J.P.Morgan still sees earnings support from operations
Beating quarterly expectations and raising forecasts, pipeline and storage outperformance, and reliable regulatory execution in Texas are expected to underpin midpoint-or-above EPS growth through the decade, JPM says.
Three of 14 brokerages rate the stock "buy" or higher, while 11 rate it "hold"; their median price target is $187 — LSEG-compiled data.
Up to the last close, the stock had fallen 1.7% year to date.
J.P.Morgan downgrades Atmos Energy and cuts price target
J.P.Morgan downgrades natural-gas utility Atmos Energy $ATO.N to "neutral" from "overweight", and cuts its price target for December 2027 to from .
