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Southwest Gas Holdings, Inc.
Southwest Gas Holdings, Inc. (NYSE: SWX) is a utility firm based in the American Southwest specializing in purchasing, distributing, and transporting natural gas. The company's activities are divided into natural gas operations and utility infrastructure services.
Why should Investors Book Profits?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation:
SWX's stock price has surged 20.27% in the past month and made a new 52 week high on March 18. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 70.07.
Considering the surge in the share price in a short span, leveraged balance sheet, bottom-line stress, macro headwinds, industry lagging margins, and current valuation, we recommend a "Sell" rating on the stock at the closing price of USD 78.61, up 2.74% as of March 18, 2022.
1-Year Technical Price Chart (as of March 18, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.