UPDATE: Ladenburg Thalmann Raises PT to $43 on American States Water Company
Ladenburg Thalmann raises its price target to $43 on American States Water Company (NYSE: AWR) as shares trade at discount to sector based on 2012 drivers.
Ladenburg Thalmann notes, "Regulated earnings in 2012 will be essentially flat, in our view, as the company wraps the final year of its current rate cycle. The key drivers of our 2012 model include 1) the expectation that the 9.99% allowed ROE and 55% equity ratio embedded in the cost of capital settlement will be approved by the CPUC, 2) the company places into service roughly $18M in utility plant projects and recovers costs through advice letter filings, and 3) overhead grows at a similar rate to 2011."
AWR closed at $36.65 a share on Monday.
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