Demystifying American Water Works Co: Insights From 4 Analyst Reviews

American Water Works Co AWK underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $139.75, with a high estimate of $156.00 and a low estimate of $128.00. This current average has increased by 1.82% from the previous average price target of $137.25.

Understanding Analyst Ratings: A Comprehensive 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 | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Angie Storozynski |Seaport Global |Raises |Buy | $156.00|$140.00 | |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 |

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 Co. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of American Water Works Co compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of American Water Works Co's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of American Water Works Co's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on American Water Works Co analyst ratings.

About American Water Works Co

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.

A Deep Dive into American Water Works Co's Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: American Water Works Co displayed positive results in 3M. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 16.38%. This indicates a notable 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 net margin excels beyond industry benchmarks, reaching 19.9%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): American Water Works Co's ROE stands out, surpassing industry averages. With an impressive ROE of 2.31%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): American Water Works Co's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.74%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.37, caution is advised due to increased financial risk.

Analyst Ratings: What Are They?

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 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.