Update shared on 11 Dec 2025
Fair value Decreased 0.39%Analysts have nudged their price target on Southwest Gas Holdings slightly lower to about 86.17 dollars from 86.50 dollars, citing modestly weaker revenue growth expectations, partly offset by a better projected profit margin and a marginally cheaper forward earnings multiple.
What's in the News
- Southwest Gas Holdings, Inc. and Southwest Gas Corporation promoted Justin S. Forsberg to Chief Financial Officer, effective December 1, 2025, with responsibility for financial, accounting, investor relations, and internal audit functions (Key Developments)
- Forsberg, currently Vice President of Investor Relations and Treasurer, joined Southwest Gas in August 2023 after nearly 13 years in finance and accounting roles at IDACORP, Inc. and Idaho Power Company, and earlier experience at Deloitte & Touche LLP (Key Developments)
- The company reaffirmed its 2025 net income guidance, expecting between 265 million dollars and 275 million dollars for the year (Key Developments)
- By mutual agreement, current Chief Financial Officer Robert J. Stefani will leave Southwest Gas Holdings, Inc. and Southwest Gas Corporation effective December 1, 2025, with the board launching an internal and external search for his successor (Key Developments)
Valuation Changes
- Fair Value Estimate has edged down slightly to 86.17 dollars from 86.50 dollars, reflecting a modestly lower intrinsic valuation.
- Discount Rate is effectively unchanged at about 6.96 percent, indicating a stable required return assumption.
- Revenue Growth forecast has fallen moderately, from about negative 14.52 percent to approximately negative 15.64 percent, signaling slightly weaker top line expectations.
- Net Profit Margin projection has risen modestly, from roughly 13.70 percent to about 14.36 percent, implying improved profitability assumptions.
- Future P/E multiple has declined slightly to about 19.19 times from roughly 19.42 times, suggesting a marginally cheaper forward earnings valuation.
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