• Barclays set a price target of $172 for NYSE:ATO, slightly below its current trading price.
• Atmos Energy's strategic focus on safety and reliability through capital expenditure, alongside a favorable regulatory environment, supports stable and predictable cash flows.
• The company has raised its EPS guidance to $7.35 to $7.45 for the year, reflecting confidence in its financial performance and growth prospects.

Atmos Energy Corporation, traded on the NYSE under the symbol ATO, is a prominent natural gas utility company. It operates primarily in the United States, with a significant presence in Texas. The company focuses on delivering natural gas to residential, commercial, and industrial customers. Atmos Energy's main competitors include other utility companies like CenterPoint Energy and ONE Gas.

On October 9, 2025, Barclays set a price target of $172 for ATO. At that time, the stock was trading at $174.93, which is about 1.67% above the target price. This indicates that the market may have a more optimistic view of the company's future performance compared to Barclays' assessment.

Atmos Energy benefits from a favorable regulatory environment in Texas, which supports predictable cash flows. This stability allows the company to invest heavily in capital programs, with 86% of its capital expenditure focused on enhancing safety and reliability. Such investments are crucial for maintaining the infrastructure needed to deliver natural gas efficiently.

The company's earnings are fully regulated, which provides a stable revenue stream. Recent legislation in Texas, along with customer growth, has led to increased revenue and earnings. This positive trend has prompted Atmos Energy to raise its earnings per share (EPS) guidance to a range of $7.35 to $7.45 for the year, reflecting confidence in its financial performance.

Despite a slight decrease of 0.47% or $0.82 in its stock price, ATO remains strong with a market capitalization of approximately $28.08 billion. The stock has fluctuated between $174.72 and $177.01 today, with $177.01 marking its highest price over the past year. The lowest price in the past year was $136.05, indicating significant growth.