UPDATE: UBS Downgrades American Water (AWK) to Neutral

(updating comment)

UBS analyst Daniel Ford downgraded American Water (NYSE: AWK) from Buy to Neutral with a price target of $148.00 (from $133.00).

The analyst comments "We are lowering our rating on AWK to Neutral from Buy in recognition of recent price performance (+43% TTM's), a high absolute valuation (32.7x P/E) and the elevated relative value of the water group (of which AWK is the most material) vs. the S&P (1.8x; >2 standard deviations above avg.). In conjunction with this change, we highlight the best-in-class characteristics of AWK, its strong underlying business, growth prospects and ESG profile, and also review and update our valuation. As a result of this review we are raising our price target to $148/share, which when combined with the current yield (1.46%) offers a total potential return over the next 12 months of 9.9%."

For an analyst ratings summary and ratings history on American Water click here. For more ratings news on American Water click here.

Shares of American Water closed at $136.52 yesterday.

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• New Street Research Upgrades Micron Technology (MU) to Buy