One Gas downgraded to Equal Weight at Wells Fargo after ‘disappointing’ guidance

As previously reported, Wells Fargo analyst Sarah Akers downgraded One Gas to Equal Weight from Overweight with a price target of $80, down from $89, after the company issued "disappointing" 2023 EPS guidance that was 5% below her prior estimate and lowered its longer-term average EPS growth rate forecast to 4%-6% from 6%-8%. While she sees upside longer-term as she thinks the outlook could be conservative and said "one could argue that today’s reaction reflects the news," Akers does not expect shares to outperform over the next 12-18 months given the expectation for "minimal growth" in 2023 and 2024.