Northwest Natural Gas price target raised to $49 from $45 at Stifel

Published 13/06/2025, 13:28
Northwest Natural Gas price target raised to $49 from $45 at Stifel

Stifel reiterated a Buy rating on Northwest Natural Gas (NYSE:NWN) and raised its price target to $49.00 from $45.00 on Tuesday. According to InvestingPro data, the company has maintained an impressive track record of raising dividends for 54 consecutive years, currently offering a 4.9% yield.

The firm updated its model following Northwest Natural Gas’s first-quarter 2025 results, which exceeded Stifel’s estimates when adjusted for one-time items. The quarterly performance prompted the analysts to revise their projections for the utility company. With a market capitalization of $1.6 billion and trailing twelve-month revenue of $1.2 billion, the company maintains a stable financial position despite trading above its InvestingPro Fair Value.

Stifel also noted it has updated its model to account for the recent Water Utility and SiEnergy segment breakouts in Northwest Natural Gas’s reporting structure. The firm views this change positively, stating it will enable investors to track and forecast growth associated with what it considers the fastest growing parts of the company’s business model.

The price target increase reflects Stifel’s shift to basing its valuation methodology on its 2026 estimates for Northwest Natural Gas, rather than earlier-year projections previously used.

Northwest Natural Gas provides natural gas service to customers in Oregon and southwest Washington, and has been expanding its water utility and energy services businesses in recent years.

In other recent news, Northwest Natural Gas Co reported its first-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $2.28, exceeding the forecasted $2.05, and revenue reached $494.3 million, surpassing the anticipated $483.2 million. This positive performance was driven by new gas utility rates in Oregon and contributions from the Sea Energy acquisition. Additionally, the company’s net income rose to $91.8 million, up from $63.8 million in the same period last year. Northwest Natural Gas Co’s customer base saw a 9.6% growth over the past year, reflecting strong market demand. The company also reaffirmed its annual 2025 adjusted earnings guidance, expecting an EPS range between $2.75 and $2.95. Strategic acquisitions, such as the Sea Energy acquisition, are expected to contribute significantly to the company’s earnings. Despite these favorable developments, the stock price experienced a slight decline, which may reflect broader market trends or investor caution.

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