Brean Murray Carret Raises Price Target on Consolidated Water (CWCO), Maintains Buy Rating

Brean Murray Carret & Co. is reiterating its Buy rating on shares of Consolidated Water (NASDAQ: CWCO) and is raising its price target by $1 to $13.

The company released its Q1 results just below expectations which were due to higher costs related to the business development activities of the Mexico joint venture.

The firm reports, "the company was notified by the Cayman Islands government that the existing franchise agreement has been extended to July 4th, 2011 to facilitate the completion of negotiations for a new agreement. As we've noted before, the government concluded that a U.S. regulated model is superior to the current arrangement. Our opinion is that such an agreement is illogical. There are few similarities between U.S. regulated water utilities and CWCO's operations in terms of infrastructure or CAPEX needs."

Brean Murray Carret & Co. is lowering its FY11 and FY12 EPS estimates from $0.50 and $0.66 to $0.46 and $0.60.

For more ratings news on Consolidated Water click here and for the rating history of Consolidated Water click here.

Shares of Consolidated Water closed at $9.68 yesterday.

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