UPDATE: Macquarie Downgrades Aqua America to Underperform, Reiterates $29 PT on Excessive Valuation

In a report published Tuesday, Macquarie analyst Angie Storozynski downgraded the rating on Aqua America WTR from Neutral to Underperform, but reiterated the $29.00 price target. In the report, Macquarie noted, “WTR's retail ownership and strong regulatory relationships are not enough for us to justify its 5x '15 PE premium over US water peers, especially when we account for its below-average EPS growth and limited financial disclosures. Hence our downgrade of WTR to Underperform (from Neutral).” Aqua America closed on Monday at $33.61.