3 Key Takeaways from GHS' Inreasing Price Target on American Water Works Company, Inc. (NYSE: AWK)

Globe Hunter Securities, lowering rating from "Buy" to "Accumulate;" but, increasing Price Target from $52 to $56. These are GHS' Notes on the downgrade: 1. We are lowering our Q4:14 revenue by $3MM to account for the lower capex and our Q4:14 EPS is up $0.03 to $0.49 from $0.46 due to better O&M expense management. 2. Our 2015 sales estimates are now $3.22B from $3.26B and 2015 EPS is $2.60 from $2.61. 3. we are lowering our rating to Accumulate from Buy due to the valuation, which is above the water utility group average of 9.5x