The analyst is bullish on AWK's balanced approach to capital allocation and believes it executed a strong capital plan with minimal regulatory lag. 

Crowdell cites AWK as having a strong balance sheet with minimal equity needs to execute on their strong 5-year capital plan of $14 billion-$15 billion. 

The analyst believes that after the equity issuance earlier this year, the company doesn't need any additional equity until the 2027 year-end. 

Crowdell notes that the primary points of contention in rate-making processes are consumer advocate divisions within the utility commissions. He sees 9 out of AWK's 14 jurisdictions benefiting from forward test years, 11 offering fair value accounting, and 10 infrastructure mechanisms, thereby reducing regulatory earnings lag. 

The analyst sees the infrastructure mechanisms and timely capital recovery leading to a CAGR of 8%. 

Crowdell estimates adjusted EPS of $4.79 in FY23 and $5.17 in FY24.

Price Action: AWK shares are trading lower by 3.24% at $115.87 on the last check Tuesday.