Jefferies Downgrades ONE Gas Amid Interest Rate Concerns
Jefferies downgraded ONE Gas (OGS:NYSE) to Hold from Buy on Thursday due to concerns over higher-for-longer interest rates and uncertainty in Texas. The firm also reduced its price target for the natural gas distribution utility from $103 to $80, citing muted earnings expectations through FY 2027 as a key factor. The downgrade comes amid broader market anxieties about rising borrowing costs impacting regulated utilities like ONE Gas, which are sensitive to interest rate fluctuations. The firm highlighted that prolonged high rates could pressure the company’s financial performance and growth prospects in its core markets. ONE Gas shares fell 0.7% following the announcement as investors reacted to the downgrade.
Tickers: $OGS
Topics: analyst rating change natural gas utility stock downgrade