Southwest Gas Holdings Upgraded to Buy by Citi with $99 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: seekingalpha
- Earnings Guidance Upgrade: Citi upgraded Southwest Gas Holdings from Neutral to Buy with a $99 price target, anticipating EPS growth guidance of approximately 10.4% through 2030, significantly higher than the previous 7% forecast, driven by the Great Basin gas pipeline expansion and regulatory improvements in Arizona and Nevada.
- Business Restructuring Completed: The company has successfully exited its construction business, a strategic move that not only optimizes resource allocation but also enhances overall profitability, thereby strengthening its competitive position in the market.
- Acquisition Potential Analysis: Citi analyst noted that Southwest Gas remains a potential acquisition target; while a deal is unlikely in the near term, it is trading at 1.25x the 2025 rate base, at the low end of the recent gas utilities M&A range, indicating strong acquisition appeal.
- Market Competition Comparison: Southwest Gas currently trades at a discount to MDU Resources, which has rallied on a similar pipeline expansion opportunity, with Citi analysts viewing Southwest as a more attractive investment choice, reflecting market recognition of its future growth potential.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on SWX
Wall Street analysts forecast SWX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SWX is 87.33 USD with a low forecast of 82.00 USD and a high forecast of 91.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 81.940
Low
82.00
Averages
87.33
High
91.00
Current: 81.940
Low
82.00
Averages
87.33
High
91.00
About SWX
Southwest Gas Holdings, Inc. is a holding company. The Company operates through its subsidiary, Southwest Gas Corporation (Southwest). The Company operates through its segment, Natural Gas Distribution. The Natural Gas Distribution segment is engaged in the business of purchasing, distributing, and transporting natural gas. The Company and its subsidiary provide regulated natural gas delivery services to customers in portions of Arizona, Nevada, and California to meet heating, cooking, and other household needs in residential communities across these territories, as well as to facilitate the ongoing business operations of commercial and industrial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
As Big Tech Dominates the News, Small-Cap Stocks Are Surging. Can This Momentum Continue?
Tesla's Ambition: Elon Musk predicts that Optimus robots will become the best surgeons on Earth by the end of the decade.
Walmart's Drone Delivery Expansion: Walmart is collaborating with Alphabet to increase aerial drone delivery services to 40 million customers next year, a significant rise from the current two million.
Disney's Theme Park Update: Walt Disney is planning to retheme its Rock ‘n’ Roller Coaster at Hollywood Studios to feature The Muppets, showcasing the company's focus on innovative attractions.
Small-Cap Stocks Performance: There is a notable trend of small-cap stocks outperforming larger ones since mid-November, raising questions about whether this is a temporary phenomenon or the beginning of a longer-term recovery.
Continue Reading
Southwest Gas Holdings Upgraded to Buy by Citi with $99 Price Target
- Earnings Guidance Upgrade: Citi upgraded Southwest Gas Holdings from Neutral to Buy with a $99 price target, anticipating EPS growth guidance of approximately 10.4% through 2030, significantly higher than the previous 7% forecast, driven by the Great Basin gas pipeline expansion and regulatory improvements in Arizona and Nevada.
- Business Restructuring Completed: The company has successfully exited its construction business, a strategic move that not only optimizes resource allocation but also enhances overall profitability, thereby strengthening its competitive position in the market.
- Acquisition Potential Analysis: Citi analyst noted that Southwest Gas remains a potential acquisition target; while a deal is unlikely in the near term, it is trading at 1.25x the 2025 rate base, at the low end of the recent gas utilities M&A range, indicating strong acquisition appeal.
- Market Competition Comparison: Southwest Gas currently trades at a discount to MDU Resources, which has rallied on a similar pipeline expansion opportunity, with Citi analysts viewing Southwest as a more attractive investment choice, reflecting market recognition of its future growth potential.
Continue Reading