Janney starts Northwest Natural Gas at Neutral with $39 fair value estimate

As previously reported, Janney Montgomery Scott analyst Michael Gaugler initiated coverage of Northwest Natural Gas with a Neutral rating and $39 fair value estimate. Northwest Natural, which mainly provides natural gas distribution to customers in Oregon and Southwest Washington and relatively recently entered the regulated water and wastewater utility sector in Texas and Arizona, “fast-growing states with favorable regulatory environments,” has a solid dividend growth history and a dividend yield of 5.2%, which is well above the peer group average, but the firm believes that the shares are fairly priced at current levels, the analyst tells investors.