Gabelli Has Buy on American Water Works

Gabelli & Co. is out with a research report on American Water Works Inc (NYSE: AWK) and it has a Buy rating on shares.

In a note to clients, Gabelli & Co. writes, "On 11/10, the PA PUC approved a rate settlement for Pennsylvania-American resulting in a $36 mm annual rate increase with new rates effective 11/11/11. We consider the rate award to be constructive given that it was the result of a settlement and allows for a reasonable ROE. Additionally on 11/9, the New Jersey Board of Public Utilities (BPU) approved a new regulatory mechanism that will allow the state's water utilities to implement rate increases on a semi-annual basis to recover and earn a return on investment in pipe replacement."

Shares of AWK closed at $31.19 yesterday.