AGL Resources Upgraded to “Outperform” by Zacks (GAS)
AGL Resources (NYSE:GAS) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a research report issued on Friday, AnalystRatings.Net reports. The firm currently has a $65.00 price target on the stock. Zacks‘s target price points to a potential upside of 20.66% from the company’s current price.
Zacks’ analyst wrote, “AGL Resources is a premier electric utility with relatively low risk earnings growth and an expanding dividend that yields a solid 3.6%. Positioned in a niche industry with high barriers to entry, this energy services holding company enjoys near-monopoly status in its area of operation. On top of this, the utility’s best-in-class cost control and recession-proof business model presents a unique opportunity to own a safe stock. Sporting a low beta – translating into less volatility and a reasonable valuation, we see AGL Resources as an attractive investment in the energy infrastructure space. Considering these factors, plus the imminent disposal of the shipping unit, we upgrade our recommendation on the utility’s shares to Outperform from Neutral. “
Shares of AGL Resources (NYSE:GAS) traded down 1.91% on Friday, hitting $52.84. The stock had a trading volume of 777,389 shares. AGL Resources has a one year low of $41.47 and a one year high of $54.16. The stock has a 50-day moving average of $50. and a 200-day moving average of $47.6. The company has a market cap of $6.283 billion and a price-to-earnings ratio of 20.41.
AGL Resources (NYSE:GAS) last released its earnings data on Tuesday, April 29th. The company reported $1.37 EPS for the quarter, missing the Thomson Reuters consensus estimate of $2.26 by $0.89. The company had revenue of $2.56 million for the quarter, compared to the consensus estimate of $1.71 million. During the same quarter in the prior year, the company posted $1.31 earnings per share. The company’s quarterly revenue was up 50.0% on a year-over-year basis. Analysts expect that AGL Resources will post $3.89 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Sunday, June 1st. Investors of record on Friday, May 16th will be given a dividend of $0.49 per share. This represents a $1.96 dividend on an annualized basis and a yield of 3.64%. The ex-dividend date of this dividend is Wednesday, May 14th.
Other equities research analysts have also recently issued reports about the stock. Analysts at Citigroup Inc. reiterated a “neutral” rating on shares of AGL Resources in a research note on Thursday, April 17th. They now have a $53.00 price target on the stock. Analysts at BMO Capital Markets upgraded shares of AGL Resources from an “underperform” rating to a “market perform” rating in a research note on Monday, March 10th. They now have a $48.00 price target on the stock, up previously from $46.00. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $48.86.
AGL Resources Inc (NYSE:GAS) is an energy services holding company whose principal business is the distribution of natural gas.
To view Zacks’ full report, visit Zacks’ official website.
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