JPMorgan Boosts Atmos Price Target, Reaffirms Bullish View On Spire And NJR

JPMorgan analyst Richard W Sunderland shared a view on some North American utility companies ahead of upcoming earnings.

Atmos Energy Corp

Sunderland raised the price forecast of Atmos Energy Corporation (NYSE:ATO) from $164 to $166, while maintaining an Overweight rating.

The analyst writes that the abatement letters filed in Texas distribution rate cases suggest the company has either finalized or reached agreements in principle in both proceedings, putting them on track for resolution this spring.

This outcome aligns with expectations and positions the company with minimal regulatory exposure going forward, which is a positive in today's uncertain environment, adds the analyst.

Sunderland says that, as Atmos typically revises guidance in the second quarter, he expects the company to raise the lower end of its current EPS range of $7.05–$7.25, narrowing toward the upper end (JPMorgan/Street median: $7.17).

Also Read: JPMorgan: Spire Positioned For Growth With Favorable Missouri Legislation, Rate Case Developments

Spire Inc

Sunderland reiterated an Overweight rating for Spire Inc. (NYSE:SR) and a price forecast of $85.

The analyst says he remains optimistic about the company’s outlook and anticipates that the intervenor testimony in the Missouri rate case (due by April 23) will suggest a potential settlement path.

The recent signing of SB4 further strengthens the regulatory backdrop in Missouri, though it's likely too early in the process to factor in benefits under a future test year, adds the analyst.

The analyst expects these tailwinds to offset softer first-quarter performance and keep Spire on track to meet its 2025 goals.

Sunderland estimates the second quarter EPS to be $3.73 and the full-year 2025 to be $4.51, compared to the Street median of $3.69 and $4.50, respectively.

NewJersey Resources

NewJersey Resources (NYSE:NJR) maintains an Outperform rating with a price forecast of $56.

Sunderland expects the second-quarter EPS estimate of $1.67 (vs. Street median $1.62) and raised 2025 estimates to $3.17 (vs. consensus of $3.14), close to the high end of the company’s guidance range of $3.05-$3.20.

Sunderland writes that Energy Services remains tough to forecast, but strong January volatility supports the upside flagged by management last quarter.

The analyst expects a modest upward revision to 2025 guidance (raising the low end or pointing higher within the range) in the second quarter.

The attention has shifted to tariffs and the Inflation Reduction Act (IRA), particularly regarding their potential effect on CEV. The company has indicated that proactive sourcing decisions have shielded it from near-term tariff impacts.

Sunderland also expects a measured, reassuring stance on the IRA from the company supported by safe harbor provisions, contractual protections, and strong relationships with developers.

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