American Water (AWK) PT Lowered to $117 at Jefferies

Jefferies analyst Julian Dumoulin-Smith lowered the price target on American Water (NYSE: AWK) to $117.00 (from $122.00) while maintaining a Underperform rating.

The analyst comments "We raised our ‘25-‘29 EPS CAGR slightly to 7.4% (from 7.3%), reflecting a ~$0.03/year lift from the Nexus Water Group acquisition (2027-2029), net of $150Mn premium financing. M&A remains a lever amid rising PFAS costs, but sustaining growth requires $300-$400Mn/year in FMV deals. See LT upsides if AWK wins next rate cases in PA, NJ, and MO, where authorized ROE lags its weighted 9.65% average. Valuation remains hard to defend w/o clearer structural progress."

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