OGS - ONE Gas downgraded at Stifel on muted near-term growth

ONE Gas ( NYSE: OGS ) -0.7% in Thursday's trading as Stifel downgraded shares to Hold from Buy with an $80 price target, following a 13% gain after an initial drop when the company provided 2023 guidance that included below-consensus full-year earnings of $4.02-$4.26/share.

While continuing to favor ONE Gas' ( OGS ) pure-play gas utility strategy, regulatory constructs, long-term growth prospects and management's track record, Stifel sees little opportunity for near-term catalysts.

Given the challenging macro environment and regulatory lag associated with utilities, the firm believes EPS growth will be muted in 2023 and 2024.

ONE Gas ( OGS ) expects lower growth in 2023 followed by a return to higher growth rates out to 2027, Ted Waller writes in an analysis published on Seeking Alpha .

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