Quantcast

Analyst Actions: RGC Resources Downgraded to Neutral From Buy by Janney, Price Target Kept at $28/Share


Shutterstock photo

RGC Resources ( RGCO ) received an investment-rating downgrade Thursday to neutral from buy from Janney Montgomery Scott, which cited valuation after the energy company's shares exceeded the firm's fair-value estimate for them.

Janney's price target on RGC's shares is $28 per share, which the firm maintained. The shares closed Wednesday's session at $28.55 and are up 7.9% from a week ago.

In a note to clients, Janney said "with the shares of RGC Resources now trading solidly above our fair-value estimate of $28, we downgrade our rating from buy to neutral based on valuation." It noted that in its peer group of primarily gas utilities, RGC Resources shares are now the most expensive on a price-to-earnings basis using Janney's estimates for fiscal 2019.

Still, the firm added, "we remain bullish on the company's future prospects, and can envision a scenario whereby the shares slowly move higher from current levels."

Janney also said it is "comfortable recommending investors hold current positions; we just wouldn't add (at this time). We'll patiently wait for the next opportunity to revisit our rating with a positive when valuation is more compelling."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , ETFs
Referenced Symbols: RGCO



More from MT Newswires

Subscribe






MT Newswires
Contributor:

MT Newswires

Market News, Commodities










Research Brokers before you trade

Want to trade FX?