How are energy investors positioned?
Investing.com - Jefferies raised its price target on UGI Corporation (NYSE:UGI) to $44.00 from $43.00 on Wednesday, while maintaining a Buy rating on the energy and utility company’s stock. The stock, currently trading at $37.14, has shown strong momentum with a 34.46% gain year-to-date and trades at an attractive P/E ratio of 14.93. According to InvestingPro analysis, UGI appears to be slightly undervalued based on its Fair Value estimate.
The investment firm expects UGI to report a third-quarter earnings per share loss of 11 cents, which is deeper than the Street consensus estimate of a 1 cent loss, attributing this to normal seasonal softness in the business.
Despite the projected quarterly loss, Jefferies maintains its full-year 2025 EPS forecast of $3.21, which remains above both the Street consensus of $3.16 and UGI’s own guidance range of $3.00-3.15.
The firm trimmed its fiscal 2026-2028 Utilities EPS estimates following a rate case, but still projects approximately 6.7% compound annual growth rate, exceeding UGI’s long-term guidance of 4-6%.
Jefferies highlighted that UGI’s midstream business remains underappreciated, with potential upside from Pennsylvania data center development, while noting that the company’s fiscal 2026 guidance, expected during its fourth-quarter earnings call, represents a key catalyst for the stock.
In other recent news, UGI Corporation reported a strong performance in Q2 2025, with earnings per share of $2.21, surpassing analyst estimates of $1.96. Despite missing revenue forecasts, UGI’s strategic initiatives and increased guidance for fiscal 2025 have bolstered investor confidence. In addition, UGI Corporation announced the sale of its Hawaii propane assets to Isle Gas, a subsidiary of AMF Hawaii Investment Holdings. This transaction includes approximately 750,000 gallons of propane storage and a delivery fleet, with proceeds aimed at reducing company debt. Meanwhile, Mizuho (NYSE:MFG) raised its price target for UGI Corporation to $41 from $39, maintaining an Outperform rating. The price target increase is attributed to the refinancing of AmeriGas’ 2026 notes and asset sales at AmeriGas Hawaii and UGI International Italy. These developments reflect UGI’s ongoing efforts to streamline operations and improve financial health.
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