Analyst Ratings For American Water Works

5 analysts have shared their evaluations of American Water Works AWK during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over 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 $141.2, a high estimate of $164.00, and a low estimate of $124.00. Witnessing a positive shift, the current average has risen by 0.38% from the previous average price target of $140.67.

Breaking Down Analyst Ratings: A Detailed Examination

In examining recent analyst actions, we gain insights into how financial experts perceive American Water Works. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to American Water Works. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of American Water Works compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for American Water Works's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of American Water Works'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 analyst ratings.

Unveiling the Story Behind American Water Works

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.

Breaking Down American Water Works's Financial Performance

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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 4.74% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.

Net Margin: American Water Works's net margin excels beyond industry benchmarks, reaching 24.11%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): American Water Works's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.75%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.89%, the company showcases effective utilization of assets.

Debt Management: American Water Works's debt-to-equity ratio surpasses industry norms, standing at 1.3. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Core of Analyst Ratings: What Every Investor Should Know

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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