In a report released today, Ryan Connors from Boenning & Scattergood reiterated a Buy rating on Aqua America (WTR), with a price target of $43. The company’s shares closed yesterday at $36.34.
“We attended a group meeting with Aqua’s senior management team yesterday, and came away reinforced in our favorable view of the stock, the core growth outlook for the regulated water and wastewater business, and the Peoples Gas transaction. The company clarified a number of key fundamental points that affirm our conviction in the story, including valuation discipline on municipal acquisitions, the organic earnings growth trajectory of the core water business, and the strategic evaluation process that led to the Peoples acquisition, and we believe the stock offers the best intermediate-term growth outlook in the space for a discount valuation.”
According to TipRanks.com, Connors is a 4-star analyst with an average return of 10.2% and a 72.9% success rate. Connors covers the Industrial Goods sector, focusing on stocks such as Advanced Drainage Systems, Watts Water Technologies, and Mueller Water Products.
Aqua America has an analyst consensus of Moderate Buy, with a price target consensus of $41.
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Based on Aqua America’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $3.66 million. In comparison, last year the company had a net profit of $53.47 million.
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Aqua America, Inc. is a holding company, which engages in the provision of water and wastewater services. It supports a range of customers across Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, and Virginia.