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Research Alert: CFRA Lifts Opinion On Shares Of Southwest Gas Holdings, Inc. To Hold From Sell

05/10/2021 08:13

12:10 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price to $79 from $59, 17.8x our 2022 EPS estimate, a discount to SWX's historical forward average. We narrow our 2021 EPS estimate by $0.01 to $4.26 and maintain our 2022 estimate at $4.45. SWX posts Q1 EPS of $2.03 vs. $1.31, beating the S&P Capital IQ consensus estimate by $0.18 due to continued benefits from temporary changes in the cash surrender values of company-owned life insurance or COLI policies, as well as improved operating margins due to recently completed rate cases in SEX's three state service territory, and a 1.8% Y/Y growth rate in customers with 37,000 first time meter sets over the past 12 months. In the Centuri segment, revenue increased 9% Y/Y driven by emergency storm restoration services performed by Linetec following tornadoes and ice storms in Texas and surrounding areas. Our revised opinion reflects expected favorable fundamentals for Centuri going forward given the need for storm hardening in the industry following recent extreme weather events.