UPDATE: Ladenburg Thalmann Initiates SJW at Buy

Ladenburg Thalmann is out with its report today on SJW SJW, initiating SJW at Buy. In a note to clients, Ladenburg Thalmann writes, "We initiate coverage of SJW shares with a BUY rating and a $29 price target, representing a total return of 33.2%. Our target is based on a total enterprise valuation of 9x non-real estate 2012E EBITDA of $90.4 million, plus the $80 million book value of the real estate portfolio, (which we believe is a fair approximation, on balance), and year-end 2011 net debt and total diluted shares of $276 million and 20.9 million, respectively. Our water utility peer group is currently averaging 9x 2012E EBITDA." Shares of SJW closed Wednesday at $22.29.