Barclays Lowers Atmos Energy Target to $165 as Analysts Diverge on Valuation
Dallas, Friday, 16 January 2026.
Diverging from recent optimism by Citigroup, Barclays lowered its target for Atmos Energy to $165, highlighting growing caution around the utility’s capital expenditure and valuation.
Barclays Revises Outlook Amidst Market Volatility
On January 15, 2026, Barclays analyst Nicholas Campanella formally adjusted the financial outlook for Atmos Energy (NYSE: ATO), lowering the price target from $172.00 to $165.00 [1][5]. Despite this downward revision, the firm maintained its “Equal-Weight” rating, suggesting a neutral stance on the stock’s immediate growth prospects relative to the broader market [3][5]. This adjustment represents a decrease of -4.07%, signaling a tighter valuation model from the bank compared to its previous assessment [1].
Institutional Divergence
The revised target from Barclays introduces a notable contrast in institutional sentiment, arriving just days after a more bullish assessment from Citigroup. On January 13, 2026, Citigroup analyst Ryan Levine raised the price target for Atmos Energy from $163.00 to $182.00, while maintaining a “Neutral” rating [1][4]. This disparity in valuation reflects a broader lack of consensus among major firms; in December 2025, UBS increased its target to $174.00, whereas Morgan Stanley downgraded the stock to “Equal-Weight” and lowered its target to $172.00 [1]. Such divergence underscores the complexity analysts face in projecting the utility’s performance amidst fluctuating economic conditions.
Market Performance and Fundamental Strength
Following the announcement, Atmos Energy shares displayed resilience in the market. On January 15, 2026, the stock closed at $170.14, marking a daily gain of 0.84% [2]. The current trading price hovers above Barclays’ new $165 target but remains below the broader analyst consensus; the average 12-month price target currently stands at $179.00, with optimistic estimates reaching as high as $185.00 [4]. From a fundamental perspective, the company continues to rely on its extensive infrastructure, serving over 3.3 million customers across eight states, with approximately two-thirds of its earnings generated from its Texas operations [4]. As of September 30, 2025, Atmos Energy reported a revenue growth rate of approximately 12.09% and a robust net margin of 23.71% [4].