Mizuho Raises UGI Corporation Price Target Amid Confidence in Strategic Shift

Mizuho analysts raised their price target for UGI Corporation (NYSE:UGI) to $33 from $30, reiterating an Outperform rating on the stock. The revision reflects growing confidence in UGI’s potential to bridge its valuation gap, driven by strategic initiatives and promising updates from its leadership.

Since upgrading UGI to Outperform in November, the company’s shares have gained momentum, particularly following a strong fiscal fourth-quarter earnings call. New CEO Bob Flexon delivered a compelling message around the role of AmeriGas and the company’s broader valuation strategy. Recent meetings with UGI’s management, including discussions with Flexon at the PEI Conference, reinforced optimism about the company’s trajectory.

AmeriGas remains central to unlocking UGI’s valuation potential. Despite current market expectations assigning limited equity value to AmeriGas, operational improvements or strategic asset sales across UGI’s portfolio could act as catalysts. Additionally, a greater emphasis on the company’s Midstream and Utilities segments offers a pathway to sustained long-term value creation.

Mizuho’s revised price target incorporates 2027 projections, reflecting the company’s progress and the anticipated benefits of its strategic realignment. While the recent rally addressed some of the valuation discount, the analysts see further upside as UGI executes on its plans and stabilizes its operations.