Skip to main content

Market Overview

BofA Upgrades American Water Works, Says Stock A Clean Energy Play

Share:
BofA Upgrades American Water Works, Says Stock A Clean Energy Play

The latest industry conference highlighted the water sector’s unique position, and the premium of this sector over electric and gas peers appears “sustainable into the coming year,” according to BofA Securities.

The American Water Works Analyst: Julien Dumoulin-Smith upgraded American Water Works Company Inc (NYSE: AWK) from Underperform to Neutral and raised the price target from $139 to $155.

The American Water Works Thesis: While renewables have bright long-term prospects, “we perceive few ‘eligible’ carbon free opportunities in US,” and American Water Works remains a “broader beneficiary,” Dumoulin-Smith said in the upgrade note.

“See continued success of ratebase growth as also decisive & consistent vs Utility peers. Municipal budget pressures should become ever more acute in ’21 enabling further opportunities and de-risking high end EPS growth trajectory,” the analyst said. 

“To this point, FMV value legislation has now been passed in 10 of AWK’s 14 state regulated footprint, while the company further enjoys consolidated tariffs in 12 states and water accountability legislation in three.” 

The recent pullback does not “align with continued bid for clean sector,” according to BofA Securities. 

AWK Price Action: Shares of American Water Works were up 1.45% at $150.50 at last check Monday. 

Latest Ratings for AWK

DateFirmActionFromTo
Jan 2021BarclaysMaintainsEqual-Weight
Jan 2021Atlantic EquitiesInitiates Coverage OnOverweight
Oct 2020Janney CapitalDowngradesBuyNeutral

View More Analyst Ratings for AWK
View the Latest Analyst Ratings

 

Related Articles (AWK)

View Comments and Join the Discussion!

Posted-In: BofA Securities Julien Dumoulin-SmithAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com