Southwest Gas initiated with a Hold at Jefferies

Jefferies initiated coverage of Southwest Gas (SWX) with a Hold rating and $73 price target, implying total return of 9%. The pace and price at which the company is able to sell its $1.4B Centuri Holdings (CTRI) stake will determine Southwest’s path to a “much improved” balance sheet and buybacks, the analyst tells investors in a research note. The firm believes the sale is “constructive,” but that execution is key. Monetizing 81% of a spin “will be tricky,” Jefferies contends.