Citi lowers Southwest Gas target, opens ‘positive catalyst watch’

Citi lowered the firm’s price target on Southwest Gas to $61 from $70 and keeps a Buy rating on the shares. The analyst also opened a “positive catalyst watch” on the shares. The setup in the next two quarters is that Southwest Gas is likely to get clarity on its preferred path to exiting the construction business and becoming a pure play utility in the next few weeks, and then execute in early 2024, the analyst tells investors in a research note. The firm sees an upside bias for the stock into the upcoming catalysts.