Goldman Sachs Group Inc. lowered shares of AGL Resources (NYSE:GAS) from a neutral rating to a sell rating in a research report released on Monday morning, TheFlyOnTheWall.com reports. Goldman Sachs Group Inc. currently has $43.00 price objective on the stock, down from their previous price objective of $44.00.
“We downgrade GAS to Sell from Neutral, with 8% downside to our $43 target price, vs. 10% average upside for our coverage. At 15.1x 2015 P/E vs. 14.0x average for peers ATO/WGL, we believe current valuation for this LDC is too rich versus its relatively slow 4-6% growth rate. With four out of GAS’ six major utilities earning at or above their authorized ROEs and weak customer and rate base growth, we see limited earnings upside from its core utility segment (80% of consolidated EBIT). Muted natural gas spreads will likely negatively impact margins and returns in its non-regulated segments. We trim our 2014/2015 EPS $0.05 to $3.00/$3.10, broadly in line with consensus.,” Goldman Sachs Group Inc.’s analyst commented.
Separately, analysts at Zacks upgraded shares of AGL Resources from an underperform rating to a neutral rating in a research note to investors on Thursday, September 19th. They now have a $48.00 price target on the stock. Two research analysts have rated the stock with a sell rating and four have given a hold rating to the company. The company currently has a consensus rating of Hold and an average price target of $44.80.
Shares of AGL Resources (NYSE:GAS) opened at 45.92 on Monday. AGL Resources has a 52-week low of $38.62 and a 52-week high of $49.31. The stock’s 50-day moving average is $47.11 and its 200-day moving average is $45.05. The company has a market cap of $5.455 billion and a P/E ratio of 16.47.
AGL Resources (NYSE:GAS) last posted its quarterly earnings results on Wednesday, October 30th. The company reported $0.24 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.14 by $0.10. The company had revenue of $675.00 million for the quarter, compared to the consensus estimate of $614.00 million. During the same quarter last year, the company posted $0.09 earnings per share. AGL Resources’s revenue was up 9.9% compared to the same quarter last year. Analysts expect that AGL Resources will post $2.79 EPS for the current fiscal year.
AGL Resources Inc (NYSE:GAS) is an energy services holding company whose principal business is the distribution of natural gas.
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