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Urbanization And Regulatory Reforms Will Drive Water Utility Expansion

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AnalystConsensusTarget
Not Invested
Published 20 Aug 2024

Update shared on21 Sep 2025

Fair value Decreased 0.35%
Previous
AnalystConsensusTarget's Fair Value
US$141.11
3.6% undervalued intrinsic discount
21 Sep
US$136.07
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1Y
-6.9%
7D
-0.2%

The marginal decrease in American Water Works Company's Future P/E multiple, while revenue growth forecasts remain stable, has led to a slight downward revision in its consensus analyst price target to $141.11.


What's in the News


  • American Water Works Company completed a $1 billion follow-on equity offering, issuing 7,042,254 common shares at $142 each with a $2.343 discount per share.
  • TD Securities (USA), RBC Capital Markets, BofA Securities, and Truist Securities were added as co-lead underwriters for the $1 billion follow-on equity offering.
  • Certain common stock, restricted stock units, and performance stock units held by directors and select officers are subject to a 61-day lock-up agreement ending October 5, 2025.
  • The company is actively seeking regulated acquisitions focused on system consolidation, upgrades, and compliance.
  • 2025 earnings per share guidance was narrowed to $5.70-$5.75 (weather-normalized basis).

Valuation Changes


Summary of Valuation Changes for American Water Works Company

  • The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $141.60 to $141.11.
  • The Future P/E for American Water Works Company has fallen slightly from 25.38x to 24.42x.
  • The Consensus Revenue Growth forecasts for American Water Works Company remained effectively unchanged, at 6.6% per annum.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.