One Gas initiated with a Sell at UBS

UBS initiated coverage of One Gas with a Sell rating and $61 price target. The analyst sees the company’s earnings for 2026 and 2027 being 3%-4% below Street expectations and believes it would take until 2028 for the majority of the earnings drag from unrecovered expenses to be captured in customer rates. The stock appears to be pricing in earnings growth above UBS’s forecast and negative consensus earnings revisions could weigh on performance of the shares over the 12 months, the analyst tells investors in a research note.