Stifel has increased its price target for Northwest Natural Gas (NWN, Financial) from $45 to $49, maintaining a Buy rating on the stock. This adjustment follows the company’s first-quarter results, which exceeded the firm’s expectations after adjustments for non-recurring items. Additionally, the price target revision incorporates recent changes in NWN’s business segments, specifically the Water Utility and SiEnergy divisions. The updated target is based on projections for the year 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Northwest Natural Holding Co (NWN, Financial) is $48.80 with a high estimate of $56.00 and a low estimate of $42.00. The average target implies an
upside of 21.15%
from the current price of $40.28. More detailed estimate data can be found on the Northwest Natural Holding Co (NWN) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Northwest Natural Holding Co’s (NWN, Financial) average brokerage recommendation is currently 2.0, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Northwest Natural Holding Co (NWN, Financial) in one year is $45.71, suggesting a
upside
of 13.48% from the current price of $40.28. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the Northwest Natural Holding Co (NWN) Summary page.
NWN Key Business Developments
Release Date: May 06, 2025
Adjusted Net Income: $91.8 million or $2.28 per share for Q1 2025, up from $63.8 million or $1.69 per share in Q1 2024.Utility Customer Growth Rate: 9.6% for the 12 months ended March 31, 2025.SiEnergy Acquisition: Added approximately 73,000 gas meters in Texas.Northwest Natural Water Growth: 5.9% increase in customer base over the last 12 months.Revenue Requirement Increase Request: $59.4 million or 5.8% over current rates in Oregon.Capital Structure: 52% equity and 48% long-term debt, with a return on equity of 10.4%.SiEnergy Net Income: $5.5 million or $0.14 per share for Q1 2025.Water Segment Net Income: Increased by $2.4 million or $0.06 per share.Other Businesses Net Loss: Adjusted net loss of $2.6 million, an increase of $1.4 million or $0.06 per share.2025 Adjusted Earnings Guidance: Reaffirmed at $2.75 to $2.95 per share.Organic Customer Growth Projection: 2% to 2.5% for 2025, with SiEnergy contributing 20% or more.Capital Expenditures for 2025: Expected to be $450 million to $500 million.Liquidity: More than $600 million as of March 31, 2025.Equity Issuances Expected: $65 million to $75 million in 2025.Junior Subordinated Debenture Issuance: $325 million completed in March 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Northwest Natural Holding Co (NWN, Financial) reported a strong first quarter with adjusted net income of $2.28 per share, up from $1.69 per share in the same period last year.The acquisition of SiEnergy contributed significantly to customer growth, adding about 73,000 gas meters in Texas and driving a combined utility customer growth rate of 9.6%.Northwest Natural Water showed a 5.9% increase in customer base, supported by three acquisitions, and is expected to contribute $0.25 to $0.30 in earnings per share for 2025.The company was named one of the 2025 World’s Most Ethical Companies by Ethisphere for the fourth consecutive year, highlighting its commitment to business integrity.Northwest Natural Renewables projects began operations last year and are meeting production expectations, providing steady cash flows and earnings. Negative Points Higher depreciation and interest expenses partially offset the strong financial results, impacting overall profitability.The Oregon general rate case filed to recover critical investments may lead to increased customer rates, which could affect affordability concerns.The company faces ongoing regulatory processes, such as the Oregon rate case, which are adjudicated over a 10-month period, potentially delaying financial outcomes.The ‘other’ business category reported an adjusted net loss of $2.6 million, an increase from the previous year, primarily due to higher interest expenses.Despite strong growth, the company anticipates modest regular common equity financing needs in 2025, with equity issuances expected to be in the range of $65 million to $75 million.