Update shared on04 Sep 2025
Analysts maintained a positive outlook on Essential Utilities, citing reaffirmed EPS growth guidance, strong sector positioning, and consistent execution, resulting in an unchanged consensus price target of $46.38.
Analyst Commentary
- Management's reaffirmation of long-term annual EPS growth guidance of 5%-7%.
- Improved confidence following Essential Utilities’ presentation at a major industry conference.
- Observations that the company remains well-positioned within the water utilities sector.
- Sustained execution of corporate strategy underpinning bullish sentiment for future growth.
- Positive outlook driven by the company’s demonstrated ability to meet strategic and financial targets.
What's in the News
- Essential Utilities partnered with International Electric Power III to invest in a 1,400-acre data center facility in Greene County, Pennsylvania; Aqua will design, build, and operate an 18 MGD water treatment plant for the project, while Peoples will provide gas consultive and energy management services.
- The Greene County project will feature 944 MW of natural gas combined cycle turbines, battery storage, and grid backup, with operations expected to begin in the first quarter of 2029; Essential continues discussions with data center developers representing over 5 GW of power demand.
- Essential Utilities provided earnings guidance for 2025, expecting EPS growth of 5% to 7% for the full year, with the third and fourth quarters representing 10–20% and 20–30% of annual guidance, respectively.
- The board increased the quarterly cash dividend by 5.25% to $0.3426 per share.
Valuation Changes
Summary of Valuation Changes for Essential Utilities
- The Consensus Analyst Price Target remained effectively unchanged, at $46.38.
- The Consensus Revenue Growth forecasts for Essential Utilities remained effectively unchanged, at 5.1% per annum.
- The Net Profit Margin for Essential Utilities remained effectively unchanged, at 26.98%.
Disclaimer
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