Despite the prospect of rising interest rates, the firm views Questar as a solid long-term investment offering an attractive current yield of 4%, Jefferies added.
However, Questar shares have fared much worse, declining more than 11% amid decelerating Wexpro growth, Jefferies noted.
"Overall, sentiment on Questar is poor and nothing is being ascribed for the company's upside opportunities so we see muted downside risk and a longer-term upside skew," Jefferies analysts said.
Questar is an integrated natural gas holding company that develops, produces and delivers clean energy in the Rockies, North America.
Shares of Questar are rising 2.26% to $21.70 in morning trading Wednesday.
Separately, TheStreet Ratings team rates QUESTAR CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUESTAR CORP (STR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: