American Water Fair Value Estimate Rises to $138.73 as Analysts Weigh Rate Cases and Merger

AnalystCorporate ActionRegulation
โดย Simply Wall St·Read original
Summary · why it matters

The fair value estimate for American Water Works Company has increased from US$135.55 to US$138.73 per share, reflecting adjustments to revenue growth, net profit margin, and future P/E multiple assumptions. Analysts are weighing mixed regulatory outcomes and expectations around the Essential Utilities merger approvals, with Huntington initiating coverage at Outperform with a US$148 price target and UBS raising its target to US$150, while Truist cut its target to US$130 and BofA reduced its target to US$134. The company outlined an approximately US$48 billion wastewater and water infrastructure capital plan over the next decade, and Missouri American Water filed a rate request seeking about US$179 million in additional annual revenue to support roughly US$1.6 billion in planned investments. American Water also completed the US$6.4 million acquisition of Hopewell Borough's water system, serving around 930 customers, and plans about US$7 million of investments over five years targeting PFAS, lead line replacement, and regulatory compliance.

Impact on stocks 6

Financials▲ · 4 stocks
Climate Adaptation & Water▲ · 2 stocks
American Water Works
AWK
▲ PositiveCapitalrelevance

Fair value estimate raised, multiple analyst upgrades, and large infrastructure capital plan.

Essential Utilities Inc
WTRG
± MixedRegulationrelevance

Mentioned in context of merger approvals with American Water, but no direct impact on Essential Utilities.

Theme Impact 2

Off-coverage companies 1

Missouri American WaterPrivate▲ Positive
Regulationrelevance

Missouri American Water filed a rate request seeking $179M additional annual revenue.

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