Credit Suisse sees utilities sector outperforming despite rising rates
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Atmos Energy (NYSE:ATO) is initiated with an Outperform rating and $133 price target at Credit Suisse, part of the firm's broadly constructive view of the utilities sector (NYSEARCA:XLU), which it believes will outperform despite higher interest rates, as utilities pass through most costs to consumers. 
While the Atmos (ATO) story is "characteristically quiet from a catalyst perspective," the stock offers a high-quality pure-play on the local distribution company sector with potential upside to 2023 earnings estimates, according to Credit Suisse's Nicholas Campanella.
CenterPoint Energy (NYSE:CNP), started with an Outperform rating and $34 PT, has been realizing the benefits of a wider restructuring, Campanella said, believing the stock can still benefit from multiple expansion.
The firm said it leans toward utilities it sees as best positioned for inflation and future decarbonization driven initiatives; top picks are American Electric Power (AEP), Duke Energy (DUK), Entergy (ETR) and Sempra Energy (SRE), while it also awards Outperform ratings to Ameren (AEE), Evergy (EVRG), FirstEnergy (FE), PG&E (PCG) and PPL Corp. (PPL)
Atmos Energy (ATO) "continues to grow, more than doubling its investment in net operating assets over the last four years or so, with no increase in debt ratio," Robert Honeywill writes in a bullish analysis posted on Seeking Alpha.