02:46 PM EDT, 04/12/2024 (MT Newswires) -- Atmos Energy's ( ATO ) strong balance sheet should help the company achieve earnings growth of 7.3% annually in the five-year period ending in 2028, UBS Securities said Friday in a report initiating coverage.

Almost all of the company's capital expenditures begin contributing to earnings within 12 months given "generally supportive regulatory frameworks," UBS said.

Atmos Energy ( ATO ) plans to invest $12.5 billion in its distribution network over the next five years with 97% of its rate base in states that offer policy support for natural gas infrastructure, the report said.

Most of the positive growth aspects are already priced into its stock, UBS said.

UBS rated the stock neutral with a 12-month price target of $124.

Price: 113.75, Change: -0.63, Percent Change: -0.55