Analyst Ratings For American Water Works

5 analysts have expressed a variety of opinions on American Water Works AWK over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for American Water Works, revealing an average target of $144.6, a high estimate of $164.00, and a low estimate of $124.00. Observing a downward trend, the current average is 2.74% lower than the prior average price target of $148.67.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive American Water Works is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to American Water Works. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Water Works compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of American Water Works's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of American Water Works's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on American Water Works analyst ratings.

Get to Know American Water Works Better

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.

Key Indicators: American Water Works's Financial Health

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Positive Revenue Trend: Examining American Water Works's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.37% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 26.46%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): American Water Works's ROE excels beyond industry benchmarks, reaching 3.41%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): American Water Works's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.11% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: American Water Works's debt-to-equity ratio stands notably higher than the industry average, reaching 1.3. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.