UPDATE: Goldman Sachs Upgrades American Water Works to Buy on Strong Upside Potential
Goldman Sachs raised its rating on American Water Works (NYSE: AWK) from Neutral to Conviction List Buy and increased its price target from $40 to $42.
Goldman Sachs commented, "Even after outperformance vs. the S&P500 in the last 3 years, we still believe AWK offers strong upside, especially after its 7% pullback (vs. S&P500 +5%) since its August highs. We expect AWK to benefit from (1) above average rate base growth as the company invests in replacing aged water infrastructure; (2) recently granted rate increases; and (3) improving cash flow, which will mitigate equity needs. We forecast AWK will deliver a 3 year EPS CAGR of 10%, well above peer averages."
American Water Works closed at $36.37 on Wednesday.
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Tags: Goldman Sachs