Mizuho Securities Sets New Price Target for Southwest Gas (NYSE: SWX) Amidst Q2 Results and Growth Prospects

• Mizuho Securities has set a new price target of $103.00 for Southwest Gas (NYSE: SWX), indicating a potential 13.6% upside from its recent price of $90.67.
• Despite missing Q2 revenue and EPS estimates, Southwest Gas reported a 30.8% increase in operating income, driven by a 17.5% reduction in operating expenses.
• The company is advancing its Great Basin expansion project, which is expected to add between $270.00 million and $300.00 million in annual margin by 2028, reinforcing confidence in its 2026 guidance.

Mizuho Securities analyst Gabriel Moreen sets a new price target of $103.00 for Southwest Gas (NYSE: SWX). This suggests a potential 13.6% upside from its recent price of $90.67. Southwest Gas is a utility company involved in purchasing, distributing, and transporting natural gas. It operates with a market capitalization of approximately $6.56 billion.

Southwest Gas recently reported its second-quarter 2026 financial results. The company posted an adjusted earnings per share (EPS) of $0.45, which missed the Zacks Consensus Estimate of $0.47. Total revenues of $358.20 million also fell short of the $407.00 million estimate and declined 9.6% from the previous year's $396.30 million. Despite missing revenue and earnings estimates, the company's operating income increased by 30.8%. This growth is due to a 17.5% year-over-year reduction in total operating expenses, which came in at $273.80 million.

The adjusted EPS of $0.45, while a miss, still represents a 21.6% increase from the prior-year quarter. Looking forward, Southwest Gas is advancing its Great Basin expansion project. As highlighted by Zacks, this major initiative is expected to secure 1 billion cubic feet of gas per day. The project could potentially add between $270.00 million and $300.00 million in annual margin by 2028, showing a strong path for future growth. The company also reaffirms its full-year 2026 guidance, signaling confidence in its operations.

As highlighted by PR Newswire, Southwest Gas reports an 8.1% twelve-month-ended Utility Return on Equity (ROE), a measure of profitability. Progress is also being made in rate cases, with a constructive decision from the California Public Utilities Commission.