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Investing.com - Jefferies raised its price target on Essential Utilities, Inc. (NYSE:WTRG) to $47.00 from $43.00 on Friday, while maintaining a Buy rating on the stock. The company, currently trading at $40.47 near its 52-week high of $41.65, has demonstrated strong dividend reliability with 32 consecutive years of increases and a current yield of 3.39%.
The investment firm cited improved fundamentals and extended long-term visibility as key factors behind the price target increase, representing a potential 19% total shareholder return.
Jefferies now models a 7.0% earnings per share compound annual growth rate through 2029, up from its previous estimate of 6.3%, which exceeds the consensus forecast of 6.7%.
The firm expects this growth to be supported by returns on datacenter investment beginning in 2029, with additional momentum from a potentially tighter fiscal year 2025 guidance, clarity on PFAS capital expenditures, and resolution of Moody’s negative outlook by 2026.
Jefferies views the current share price as an attractive entry point, noting that Essential Utilities stock trades below its historical average premium levels.
In other recent news, Essential Utilities Inc. reported impressive financial results for the second quarter of 2025, with earnings per share (EPS) of $0.38, surpassing forecasts by 31.03%. The company’s revenue reached $514.9 million, exceeding projections by 10.07%. These strong earnings results highlight the company’s solid performance in the industry. Additionally, UBS raised its price target for Essential Utilities to $47.00 from $42.00, maintaining a Buy rating. This adjustment reflects confidence in the company’s reiterated guidance metrics, including long-term annual EPS growth of 5% to 7%. Barclays also initiated coverage on Essential Utilities with an Overweight rating and a price target of $42.00, suggesting a positive outlook on the company’s market position. In leadership news, Essential Utilities appointed Sadzi Martha Oliva as the new president of Aqua Indiana, effective September 2, 2025. Oliva succeeds Bob Ervin, who is retiring after a long tenure with the company.
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