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On Monday, Evercore ISI adjusted its price target for American Water Works Company, Inc. (NYSE:AWK), a U.S. public utility company, to $139.00, a decrease from the previous target of $150.00. The stock, currently trading at $130.59 with a market capitalization of $25.54 billion, maintains a P/E ratio of 26.3. Despite this change, the firm has decided to maintain its "In Line" rating for the stock. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The revision follows American Water’s announcement on Sunday, February 19, 2025, that it had exceeded earnings per share (EPS) expectations for the fourth quarter, with the company reporting $5.39 in diluted EPS over the last twelve months. The company also confirmed its EPS growth targets for 2025 and beyond, demonstrating confidence in its financial trajectory. InvestingPro data reveals impressive revenue growth of 10.63% and a consistent dividend history, having maintained payments for 18 consecutive years.
In addition to the earnings report, American Water provided updates on its equity financing strategy. The company’s plan to raise $2.5 billion through 2029 remains unchanged, with no equity issuance expected in the current year. The schedule for equity financing outlines $1 billion in 2026 and $1.5 billion in 2029.
Evercore ISI’s analyst has updated their financial model for American Water through 2027, projecting an EPS of $6.43. The new price target of $139 reflects these updated projections while continuing to recommend a neutral stance on the stock with the "In Line" rating.
Investors and market watchers will be monitoring American Water’s stock performance closely following this update from Evercore ISI. The company’s adherence to its long-term financial plans and the lack of equity issuance this year may influence market sentiment and the stock’s movement in the near term.
In other recent news, American Water Works Company, Inc. reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $1.22, surpassing the consensus estimate of $1.12. The company also reported revenue of $1.2 billion for the quarter, topping the projected $1.11 billion. For the full year 2024, earnings per share increased to $5.39 from $4.90 in 2023, with weather-normalized earnings growing 8.6% year-over-year. American Water Works reaffirmed its 2025 earnings per share guidance range of $5.65 to $5.75, aligning with the current analyst consensus of $5.72. Additionally, the company invested $3.3 billion in capital expenditures during 2024, focusing on infrastructure renewal and acquisitions, adding nearly 90,000 customer connections.
In executive news, CEO M. Susan Hardwick announced her retirement effective May 14, 2025, with current President John Griffith set to succeed her. Moreover, the company disclosed the upcoming departure of Melanie M. Kennedy, Executive Vice President and Chief Human Resources Officer, effective March 1, 2025. While the company expressed gratitude for Kennedy’s contributions, it did not name a successor or provide details on the circumstances of her departure. These developments come as American Water Works continues to execute its strategic plans and maintain its long-term earnings and dividend growth targets.
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