Wednesday - Ladenburg Thalmann has initiated coverage on ONE Gas Inc. (NYSE:OGS) with a Neutral rating and set a price target of $58.00. The financial firm's analysis acknowledges the challenges faced by the company, including the impact of rising interest rates and increasing operating and maintenance expenses.
The report suggests that despite the pressure on earned returns, there is an expectation that ONE Gas will be able to recuperate these costs through the implementation of higher rates. The strategy set forth by the company to address these financial pressures includes plans to file rate cases more frequently.
ONE Gas aims to transition towards filing more comprehensive general rate cases as opposed to the annual formula rate filings it has relied on in the past. This shift is part of the company's response to the current financial environment and its effect on their returns.
The new coverage and price target come at a time when ONE Gas is adjusting its approach to manage the financial headwinds it faces. The company's proactive measures are designed to stabilize and improve its financial performance in the midst of market challenges.
The price target of $58.00 reflects Ladenburg Thalmann's neutral stance on the stock, suggesting that while there are obstacles, there is a balanced outlook for ONE Gas's ability to navigate through the current economic conditions.
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