Analyst Expectations For American Water Works Co's Future
4 analysts have shared their evaluations of American Water Works Co (NYSE:AWK) during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 4 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Analysts have recently evaluated American Water Works Co and provided 12-month price targets. The average target is $133.0, accompanied by a high estimate of $142.00 and a low estimate of $128.00. Highlighting a 1.85% decrease, the current average has fallen from the previous average price target of $135.50.
Analyzing Analyst Ratings: A Detailed Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive American Water Works Co. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jonathan Reeder | Wells Fargo | Raises | Equal-Weight | $142.00 | $133.00 |
| Jonathan Reeder | Wells Fargo | Raises | Equal-Weight | $133.00 | $129.00 |
| Richard Sunderland | JP Morgan | Lowers | Neutral | $128.00 | $147.00 |
| Jonathan Reeder | Wells Fargo | Lowers | Equal-Weight | $129.00 | $133.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to American Water Works Co. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of American Water Works Co compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of American Water Works Co's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into American Water Works Co's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on American Water Works Co analyst ratings.
Delving into American Water Works Co's Background
American Water Works is the largest investor-owned US water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.
American Water Works Co's Financial Performance
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: American Water Works Co's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 16.38%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.
Net Margin: American Water Works Co's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 19.9%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): American Water Works Co's ROE excels beyond industry benchmarks, reaching 2.31%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): American Water Works Co's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.74%, the company may face hurdles in achieving optimal financial performance.
Debt Management: American Water Works Co's debt-to-equity ratio stands notably higher than the industry average, reaching 1.37. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.