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ATO: Dividend Growth And Legal Risks Are Expected To Shape Outlook

Update shared on 07 Nov 2025

Fair value Increased 0.64%
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AnalystConsensusTarget's Fair Value
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1Y
21.7%
7D
2.7%

Analysts have raised their price target for Atmos Energy from $170 to $171.09, citing improved profit margin forecasts and slightly higher long-term fair value expectations, even though there is a modest reduction in projected revenue growth.

What's in the News

  • Atmos Energy's Board of Directors approved a quarterly dividend increase to $1.00 per share. This marks the company’s 168th consecutive quarterly dividend, with the annual dividend rising to $4.00 for fiscal 2026. (Company announcement)
  • The company issued earnings guidance for fiscal 2026, projecting earnings per diluted share to be between $8.15 and $8.35. (Company guidance)
  • A lawsuit was filed against Atmos Energy following a house explosion in Anson, Texas that left a technician with severe injuries. The suit alleges negligence over a leaking gas pipe left during service termination. (Legal filings)

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from $170 to $171.09.
  • Discount Rate increased from 6.78% to 6.96%.
  • Revenue Growth forecast has fallen from 11.61% to 10.89%.
  • Net Profit Margin improved from 24.99% to 25.49%.
  • Future P/E ratio edged up from 22.67x to 22.93x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.