American Water Works’ Review Following Q4 Results

• 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.

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.

American Water Works Company, Inc. (NYSE:AWK) reported its Q4 results, with EPS coming in $3.55, including a $2.75 one-time gain on the sale of the Homeowner Services business. Excluding the sale, EPS was in-line with estimates and was driven by increases in revenues from infrastructure investments and both acquisition-related and organic growth.

Quarterly revenue of $951 million was slightly below the consensus estimates. Management affirmed 2022 EPS expectations in the range of $4.39-$4.49 and its financial targets for 2022-2026, including expectations of 7% to 9% annual EPS growth.

Analysts at DA Davidson believe the company is positioned well to continue growing via acquisitions and modest ROE increases as it executes on its long-term capital investment targets. The analysts reiterated their Neutral rating while decreasing their price target to $164 from $178 to reflect lower valuation multiple expectations.