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Investing.com - Jefferies raised its price target on ONE Gas Inc. (NYSE:OGS) to $89.00 from $84.00 on Wednesday, while maintaining a Buy rating on the $4.55 billion market cap natural gas utility company. According to InvestingPro data, ONE Gas has demonstrated consistent performance with a 13.4% revenue growth over the last twelve months and maintains a solid 3.53% dividend yield.
The price target increase follows ONE Gas’s second-quarter results, with Jefferies highlighting Texas House Bill 4384 as a significant development for Texas gas utilities. According to Jefferies, ONE Gas is positioned to benefit from structural earnings improvement over time due to this legislation. The company’s strong market position is further evidenced by its 11-year track record of consecutive dividend increases, as highlighted in InvestingPro’s analysis, which features over a dozen additional key insights about the company.
Jefferies noted that ONE Gas’s second-quarter guidance increase reflects both operational strength and the impact of HB 4384, pointing out that the company had already exceeded first-quarter consensus estimates by approximately $0.11 before the bill’s enactment.
The investment firm also mentioned that ONE Gas’s heavier use of commercial paper could become a tailwind for the company in 2026, potentially providing additional financial benefits.
Jefferies has raised its estimates for ONE Gas based on business strength and the impact of HB 4384, projecting a 5.4% compound annual growth rate from 2025 to 2029, which is 70 basis points above consensus estimates.
In other recent news, ONE Gas Inc. reported its second-quarter earnings for 2025, which fell short of analyst expectations. The company announced an earnings per share (EPS) of $0.53, slightly below the anticipated $0.54. Additionally, revenue came in at $423.74 million, significantly under the forecasted $531.58 million. Despite these results, ONE Gas has increased its full-year guidance, projecting net income between $261 million and $267 million, with an EPS range of $4.32 to $4.42. These developments come as the company aims to navigate the challenges of the current economic environment. The earnings miss and revenue shortfall have been noted by market analysts, but the raised guidance suggests confidence in future performance. Investors may look to upcoming quarters for further insights into the company’s financial trajectory.
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