Jefferies Starts Essential Utilities, Inc. (WTRG) at Buy

Jefferies analyst Julian Dumoulin-Smith initiates coverage on Essential Utilities, Inc. (NYSE: WTRG) with a Buy rating and a price target of $44.00.

The analyst comments "We initiate Essential Utilities (WTRG) at BUY with a +18% TSR. We forecast a +7% 2024-2028 EPS CAGR, above 6.2% consensus and at the top-end of the historical 5-7% guidance range. The 7% EPS is supported by 8.5-9.0% rate base growth less ~2.5pp equity dilution, less ~0.3pp parent interest, offset by ~90pp ROE improvement. The strong PA gas approved settlement sets a favorable stage for the PA water case with a settlement likely soon."

For an analyst ratings summary and ratings history on Essential Utilities, Inc. click here. For more ratings news on Essential Utilities, Inc. click here.

Shares of Essential Utilities, Inc. closed at $38.25 yesterday.

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