Jefferies Initiates American Water at Underperform, Highlighting Growth Challenges

• Wells Fargo analyst Shahriar Pourreza sets a price target of $142 for NYSE:AWK, indicating a potential upside of about 2.91%.
• AWK's current stock price reflects a decrease, with a trading range between $135.40 and $140.50 today.
• The proposed acquisition of Essential Utilities, Inc. by AWK is under investigation for fairness to Essential Utilities' shareholders.

American Water Works Company, Inc. (NYSE:AWK) is a leading water and wastewater utility company in the United States, providing essential services to millions of people across the country. On October 27, 2025, Shahriar Pourreza from Wells Fargo set a price target of $142 for AWK, while the stock was trading at $137.99. This suggests a potential upside of about 2.91%.

AWK's current stock price of $137.99 reflects a decrease of 2.54%, or $3.60, from its previous value. Today, the stock has fluctuated between $135.40 and $140.50. Over the past year, AWK has seen a high of $155.50 and a low of $118.74, indicating some volatility in its stock performance.

The market capitalization of AWK is approximately $26.92 billion, highlighting its significant presence in the utility sector. The trading volume today is 3,438,602 shares, showing active investor interest. This activity comes amid the proposed acquisition of Essential Utilities, Inc. by AWK, which is under investigation by Kahn Swick & Foti, LLC.

The investigation, led by former Louisiana Attorney General Charles C. Foti, Jr., is examining the fairness of the proposed sale of Essential Utilities to AWK. Shareholders of Essential Utilities are set to receive 0.305 shares of AWK for each share they own. The investigation aims to ensure that the offer is fair and adequate for Essential Utilities' shareholders.

• Wells Fargo upgraded American Water Works (NYSE:AWK) to "Overweight" despite an ongoing investigation into its proposed acquisition of Essential Utilities, Inc.
• The stock price of AWK reflects a decrease of 2.54%, or $3.60, with a current trading volume of 3,438,602 shares.
• AWK has a market capitalization of approximately $26.92 billion, indicating its significant presence in the utility sector.

American Water Works (NYSE:AWK) is a leading water and wastewater utility company in the United States, providing essential services to millions of people across the country. On October 27, 2025, Wells Fargo upgraded AWK's stock grade to "Overweight," indicating a positive outlook for the company's future performance. At the time of this announcement, the stock price was $137.99.

The upgrade comes amid an ongoing investigation by the former Attorney General of Louisiana, Charles C. Foti, Jr., and the law firm Kahn Swick & Foti, LLC. They are examining the proposed sale of Essential Utilities, Inc. to American Water Works. The investigation focuses on whether the terms of the transaction, which offer Essential Utilities shareholders 0.305 shares of AWK for each share they own, are fair and adequate.

Despite the upgrade, AWK's stock price reflects a decrease of 2.54%, or $3.60, from its previous value. Today, the stock has fluctuated between a low of $135.40 and a high of $140.50. Over the past year, AWK has experienced a high of $155.50 and a low of $118.74, indicating some volatility in its stock performance.

American Water Works has a market capitalization of approximately $26.92 billion, highlighting its significant presence in the utility sector. The company's stock is actively traded, with a current trading volume of 3,438,602 shares on the NYSE. This level of activity suggests strong investor interest in the company's future prospects, especially in light of the recent upgrade and ongoing investigation.

• Gregg Orrill from UBS set a price target of $155 for NYSE:AWK, suggesting a potential upside of 8.94% from its trading price of $142.28 as of November 19, 2024.
• AWK's current stock price is $136.67, reflecting a 1.82% increase with a price change of $2.44.
• The company's market capitalization is approximately $26.64 billion, indicating its substantial size and influence in the utility sector.

American Water Works (NYSE:AWK) is a leading utility company in the United States, providing water and wastewater services to millions of people. The company is known for its commitment to sustainability and efficient resource management. As of November 19, 2024, Gregg Orrill from UBS set a price target of $155 for AWK, suggesting a potential upside of 8.94% from its trading price of $142.28 at that time.

AWK's current stock price is $136.67, reflecting a 1.82% increase with a price change of $2.44. The stock has shown some volatility, with a daily range between $133.18 and $136.89. Over the past year, AWK's price has fluctuated significantly, reaching a high of $150.68 and a low of $113.34. This volatility can present both risks and opportunities for investors.

The company's market capitalization is approximately $26.64 billion, indicating its substantial size and influence in the utility sector. With a trading volume of 1,372,230 shares, AWK is actively traded, reflecting investor interest and liquidity in the market. This level of activity can be beneficial for investors looking to enter or exit positions efficiently.

Calvert Research and Management's evaluation of sustainable companies highlights the importance of ESG factors in investment decisions. While AWK is not specifically mentioned among the top sustainable companies, its commitment to sustainability aligns with the growing trend of ESG-focused investing. This focus on sustainability can enhance AWK's appeal to socially conscious investors.

The potential upside for AWK, as indicated by UBS's price target, combined with its market position and commitment to sustainability, makes it an interesting option for investors. As the market continues to evolve, AWK's performance and adherence to ESG principles may play a crucial role in its future growth and investor appeal.

• Gregg Orrill from UBS set a price target of $155 for NYSE:AWK, suggesting a potential upside of 8.94% from its trading price of $142.28 as of November 19, 2024.
• AWK's current stock price is $136.67, reflecting a 1.82% increase with a price change of $2.44.
• The company's market capitalization is approximately $26.64 billion, indicating its substantial size and influence in the utility sector.

American Water Works (NYSE:AWK) is a leading utility company in the United States, providing water and wastewater services to millions of people. The company is known for its commitment to sustainability and efficient resource management. As of November 19, 2024, Gregg Orrill from UBS set a price target of $155 for AWK, suggesting a potential upside of 8.94% from its trading price of $142.28 at that time.

AWK's current stock price is $136.67, reflecting a 1.82% increase with a price change of $2.44. The stock has shown some volatility, with a daily range between $133.18 and $136.89. Over the past year, AWK's price has fluctuated significantly, reaching a high of $150.68 and a low of $113.34. This volatility can present both risks and opportunities for investors.

The company's market capitalization is approximately $26.64 billion, indicating its substantial size and influence in the utility sector. With a trading volume of 1,372,230 shares, AWK is actively traded, reflecting investor interest and liquidity in the market. This level of activity can be beneficial for investors looking to enter or exit positions efficiently.

Calvert Research and Management's evaluation of sustainable companies highlights the importance of ESG factors in investment decisions. While AWK is not specifically mentioned among the top sustainable companies, its commitment to sustainability aligns with the growing trend of ESG-focused investing. This focus on sustainability can enhance AWK's appeal to socially conscious investors.

The potential upside for AWK, as indicated by UBS's price target, combined with its market position and commitment to sustainability, makes it an interesting option for investors. As the market continues to evolve, AWK's performance and adherence to ESG principles may play a crucial role in its future growth and investor appeal.

Jefferies analysts initiated coverage on American Water (NYSE:AWK) with an Underperform rating and set a price target of $124 on the stock. They expressed concerns over AWK’s current valuation premium of over 45% relative to electric utility peers, pointing to potential EPS growth deceleration due to increasing balance sheet pressures and an absence of growth tied to data centers.

The analysts identified several challenges facing American Water, including difficulties in replacing approximately $80 million in interest income after 2026, the company’s reliance on mergers and acquisitions for growth, and rising regulatory risks, particularly following a recent regulatory setback in Pennsylvania.

• UBS upgrades its price target for American Water Works Company, Inc. (NYSE:AWK) from $124 to $139 and shifts its recommendation to Neutral.
• American Water's dividend offerings are highlighted as a key attraction for income investors, despite a modest price change of -0.13% since the year's start.
• American Water's recent stock performance and solid financial health, with a market capitalization of around $26.4 billion, support UBS's revised outlook.

UBS's recent update on American Water Works Company, Inc. (NYSE:AWK), shifting its recommendation to Neutral and raising its price target from $124 to $139, reflects a nuanced view of the company's prospects. American Water, based in Camden and operating within the Utilities sector, is a significant player in providing water and wastewater services. This adjustment by UBS, as reported by TheFly, suggests a reassessment of American Water's financial performance and future growth potential.

The focus on American Water as a compelling dividend stock, as highlighted by Zacks Investment Research, complements UBS's updated stance. Despite a modest price change of -0.13% since the year's start, American Water's dividend offerings stand out. Dividends are vital for income investors seeking steady cash flow, and American Water's ability to provide this, with dividends sometimes accounting for a significant portion of long-term returns, makes it an attractive investment option.

The stock's recent performance, with a price increase of $1.12 or approximately 0.83%, trading between $134.41 and $135.71, further supports UBS's revised outlook. Over the past year, AWK's price has seen fluctuations between $113.34 and $151.22, indicating a stable yet dynamic market presence. With a market capitalization of around $26.4 billion and a trading volume of 1,763,571 shares, American Water demonstrates solid financial health and investor interest.

UBS's price target adjustment to $139, just above the current trading price, suggests a belief in American Water's steady growth potential without significant overvaluation concerns. This balanced view, considering both the company's dividend attractiveness and its market performance, provides investors with a comprehensive analysis of American Water's investment potential.