BTIG initiates Northwest Natural Gas stock with Buy rating on diversification

Investing.com - BTIG initiated coverage on Northwest Natural Gas (NYSE:NWN) with a Buy rating and a price target of $53.00 on Wednesday. The company, which boasts a market capitalization of $1.92 billion and maintains a solid 4.29% dividend yield, has achieved the remarkable milestone of raising its dividend for 55 consecutive years, according to InvestingPro data.

The research firm cited the company’s strategy of diversifying away from Oregon, which it described as a "historically challenging jurisdiction," and into Texas through the acquisitions of SiEnergy and Pines.

BTIG views Northwest Natural Gas as a "clean story" of geographic diversification, moving into what it considers a "historically constructive jurisdiction" in Texas.

The firm also highlighted that water and wastewater utility services are becoming an increasingly larger earnings driver for Northwest Natural Gas.

These water and wastewater services historically earn a premium valuation multiple compared to natural gas distribution, according to BTIG’s analysis.

In other recent news, Northwest Natural Gas Co. reported its second-quarter earnings for 2025, revealing an earnings per share of -$0.13, which missed the forecast of -$0.11. The company also reported revenue of $236.19 million, falling short of the expected $247.25 million. These earnings results have drawn attention from investors, reflecting a shortfall in both earnings and revenue projections. Additionally, Northwest Natural Holding Company has appointed Kyra Patterson as its Chief People Officer, effective September 8, 2025. Patterson previously served as Chief Human Relations Officer at Avangrid. Her appointment is part of the company’s recent leadership changes. These developments are among the latest updates concerning NW Natural Holdings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.