Update shared on 05 Nov 2025
Fair value Increased 1.67%Analysts have raised their price target for National Fuel Gas from $99.67 to $101.33 per share. This change is driven by expectations of improved capital efficiencies and positive cash flow as key developments unfold in the industry.
Analyst Commentary
Recent street research reflects a range of perspectives on National Fuel Gas, with both optimism and caution regarding the company’s future valuation, growth opportunities, and execution risks.
Bullish Takeaways
- Bullish analysts are encouraged by improving capital efficiencies. They expect these operational improvements to support higher margins and future profitability.
- Positive cash flow trends, particularly as influenced by expected regulatory developments such as the One Big Beautiful Bill, have contributed to increased price targets.
- The company is viewed as a high-quality, lower-risk option within the sector. This supports stable valuation projections amid broader market volatility.
- Analysts anticipate that growing demand related to new data center developments could serve as a catalyst for revenue growth in the coming quarters.
Bearish Takeaways
- Despite recent optimism, mixed results from sector peers signal ongoing execution risks that may impact National Fuel's near-term performance.
- There is some caution that legislative or regulatory headwinds could temper the anticipated positive effects of policy changes.
- Analysts note that further upside may be limited unless the company can sustain its current pace of efficiency improvements and capitalize on specific growth catalysts.
- Uncertainty around broader market dynamics and potential volatility in natural gas pricing remains a concern for the company’s forward outlook.
Valuation Changes
- The consensus analyst price target has increased slightly from $99.67 to $101.33 per share, reflecting updated expectations.
- The revenue growth projection has risen notably, from 14.9% to 20.5% in updated estimates.
- The net profit margin expectation has fallen significantly, dropping from 35.0% to 25.7%.
- The future P/E (price-to-earnings) ratio has increased from 9.3x to 11.2x, indicating a higher expected valuation multiple.
- The discount rate remains unchanged at 6.8%, signaling no shift in risk assessment.
Disclaimer
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