American Water Works Co (AWK) Analyst Raises Price Target to $160, Reflecting Positive Outlook

Argus Research analyst John Eade raised the price target for American Water Works Co (AWK) to $160 from $155, a 3.23% increase. This follows a "Buy" rating maintained by Eade. Analysts have varied perspectives on the stock, with UBS and Barclays maintaining "Neutral" and "Underweight" ratings, respectively. The average target price for AWK is $141.22, with a high estimate of $159.00 and a low estimate of $116.00.

American Water Works Co. (AWK) has been the subject of varied analyst opinions following recent developments. Argus Research analyst John Eade recently raised the price target for AWK to $160 from $155, a 3.23% increase, maintaining a "Buy" rating. This bullish outlook contrasts with the neutral stance of UBS, which maintains a price target of $151, and Barclays, which has an "Underweight" rating.

The average target price for AWK, as calculated by MarketBeat, stands at $141.22, with a high estimate of $159.00 and a low estimate of $116.00. This range reflects the diverse views among analysts. The consensus rating from Wall Street analysts is "Reduce," with 3 analysts giving a sell rating, 6 a hold rating, and 1 a buy rating [3].

American Water Works reported its Q2 2025 earnings on July 30, with revenue beating estimates and earnings per share (EPS) at $1.48, slightly below the FactSet estimate of $1.52. The company revised its 2025 EPS forecast to $5.70 to $5.75 from $5.65 to $5.75 [2]. The earnings report indicated a solid performance, but the slight dip in EPS may have contributed to the downward revisions in price targets.

The company recently completed a US$1 billion follow-on equity offering, issuing over 7 million shares of common stock at a price of US$142 per share with a US$2.34 discount. This capital raise may position the company for future investment in infrastructure and expansion initiatives, following management's stated acquisition ambitions in the water utility sector [1].

Investors should closely monitor the company's future earnings reports and strategic moves, as well as the evolving analyst consensus, to gauge the impact on its stock price. The market's reaction to Argus's latest adjustment will provide further insights into the sentiment surrounding American Water Works.

References:
[1] https://simplywall.st/stocks/us/utilities/nyse-awk/american-water-works/news/the-bull-case-for-american-water-works-awk-could-change-foll
[2] https://www.ainvest.com/news/american-water-works-ubs-maintains-neutral-rating-pt-151-2508/
[3] https://www.marketbeat.com/stocks/NYSE/AWK/forecast/