Citi Keeps Neutral Rating on Atmos Energy (ATO) While Raising PT

May 9, 2026 - 09:56

Citi has raised its price target on Atmos Energy (ATO) to $191 from $182, while keeping a Neutral rating on the stock. The adjustment comes as the utility company is listed among the top 10 inflation-hedge stocks to buy for 2026.

The revised price target reflects analyst confidence in the company's ability to navigate a rising cost environment. Atmos Energy, known for its natural gas distribution operations, is often seen as a defensive play due to steady demand for its services regardless of economic cycles.

During the Q1 2026 earnings call, CEO John Akers highlighted the company's fiscal performance and outlook. He noted that the utility continues to benefit from regulatory mechanisms that allow it to pass through certain costs, helping to protect margins against inflationary pressures. The company's infrastructure investments and rate case outcomes have also supported its financial stability.

Despite the positive price target increase, Citi's Neutral rating suggests the stock is fairly valued at current levels. Investors may want to watch for further developments in regulatory approvals and capital spending plans. The utility sector remains a popular choice for those seeking income and stability, and Atmos Energy's position on the inflation-hedge list underscores its appeal in the current economic climate.