Boenning & Scattergood Starts The York Water Company (YORW) at Neutral; Shares of Excellent Water Utility Fully Valued
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Price: $33.31 +0.94%
Rating Summary:
3 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Boenning & Scattergood initiates coverage on The York Water Company (NASDAQ: YORW) with a Neutral.
Boenning analyst says, "With consistent earnings growth and steady expansion of its customer base, York Water offers a reliable stable growth platform. The company’s geographic positioning allows for organic growth as population shifts from Baltimore & Washington DC towards more affordable housing in Adams and York Counties. These two counties were among the fastest growing in Pennsylvania in the 2000’s. Further, there are over 100 potential water systems in York Water’s current operating area which could be potential acquisition candidates. The single contiguous operating system allows for industry leading margins. Finally, YORW supports a 3.2% yield ($0.524 annual dividend), which the company has grown at an annual compounded rate of 5% per year for the past decade. Despite YORW’s growth potential and industry high operating metrics, we are initiating with a NEUTRAL rating. Margin expansion from current levels will be incremental and the stock trades at 21.5x our 2011 estimate and 21.4x our 2012 estimate ~ industry highs for both. We do note the reliability of earnings and yield; we become more constructive below $15."
For more ratings news on The York Water Company click here and for the rating history of The York Water Company click here.
Shares of The York Water Company closed at $16.64 yesterday.
Boenning analyst says, "With consistent earnings growth and steady expansion of its customer base, York Water offers a reliable stable growth platform. The company’s geographic positioning allows for organic growth as population shifts from Baltimore & Washington DC towards more affordable housing in Adams and York Counties. These two counties were among the fastest growing in Pennsylvania in the 2000’s. Further, there are over 100 potential water systems in York Water’s current operating area which could be potential acquisition candidates. The single contiguous operating system allows for industry leading margins. Finally, YORW supports a 3.2% yield ($0.524 annual dividend), which the company has grown at an annual compounded rate of 5% per year for the past decade. Despite YORW’s growth potential and industry high operating metrics, we are initiating with a NEUTRAL rating. Margin expansion from current levels will be incremental and the stock trades at 21.5x our 2011 estimate and 21.4x our 2012 estimate ~ industry highs for both. We do note the reliability of earnings and yield; we become more constructive below $15."
For more ratings news on The York Water Company click here and for the rating history of The York Water Company click here.
Shares of The York Water Company closed at $16.64 yesterday.
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