Freedom Broker Upgrades California Water Service Group (CWT) to Buy

Freedom Broker analyst Matvey Tayts upgraded California Water Service Group (NYSE: CWT) from Hold to Buy with a price target of $53.00 (from $49.00).

The analyst comments "California Water Service Group reported Q3'26 diluted EPS of $1.05, up 1.9% YoY but 8.0% below our estimate of $1.14. The earnings miss was primarily driven by higher-than-expected income taxes and lower net other income, despite pre-tax operating income exceeding our forecast by 14.8%. The higher tax burden reflected a scheduled reduction in the TCJA refund. We revised our tax assumptions to reflect the lower recurring TCJA benefit, while our rate-base-driven earnings forecasts remain broadly unchanged, with FY26–FY28 EPS of $2.39/ $2.53/$2.72. Q3 capital investment reached a record $148.3mn, and CWT entered into agreements for $275mn of long-term debt and forward equity sales with estimated proceeds of $77.8mn. Together with existing liquidity, these arrangements are expected to support the company's funding needs into H1'27, including the Nevada and Oregon acquisitions. Following the roll-forward of our valuation and a lower cost of equity, we raise our price target to $53 from $49 and upgrade the stock to Buy from Hold."

For an analyst ratings summary and ratings history on California Water Service Group click here. For more ratings news on California Water Service Group click here.

Shares of California Water Service Group closed at $47.15 yesterday.

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