UPDATE: Argus Upgrades Southwest Gas (SWX) to Buy

Argus analyst Kristina Ruggeri upgraded Southwest Gas (NYSE: SWX) from Hold to Buy with a price target of $100.00.

The analyst comments "We are raising our rating on Southwest Gas Holdings Inc. (NYSE: SWX) to BUY from HOLD. Southwest distributes and transports natural gas and electricity in the Western U.S. The company operates in some of the fastest-growing states in the country and substantially expanded its customer base in 2021. In April, the SWX board received what management described as an 'attractive' proposal to acquire the company. It subsequently formed a committee to consider strategic alternatives, including the proposed buyout, the sale of one or more business units, and/or the spinoff of the Centuri construction services business. Management believes that a Centuri spinoff would make cash flow more predictable and strengthen Southwest's balance sheet with the sale proceeds. The spinoff would also be favorable for the company's credit ratings and enable SWX to finance large infrastructure projects without issuing new equity."

For an analyst ratings summary and ratings history on Southwest Gas click here. For more ratings news on Southwest Gas click here.

Shares of Southwest Gas closed at $92.21 yesterday.

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