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American Water ( (AWK) ) has provided an announcement.
On October 26, 2025, American Water Works Company, Inc. and Essential Utilities, Inc. announced an Agreement and Plan of Merger, which will see Essential become a wholly owned subsidiary of American Water. This strategic merger, approved by both companies’ boards, aims to enhance operational efficiency and expand customer service capabilities, with a combined market capitalization of approximately $40 billion. The merger is expected to be accretive to American Water’s earnings per share in the first year and maintain long-term growth targets. The merger will also provide greater long-term growth opportunities for employees and strengthen commitments to community and water affordability.
The most recent analyst rating on (AWK) stock is a Sell with a $134.00 price target. To see the full list of analyst forecasts on American Water stock, see the AWK Stock Forecast page.
Spark’s Take on AWK Stock
According to Spark, TipRanks’ AI Analyst, AWK is a Outperform.
American Water’s overall stock score is driven by strong earnings growth and strategic acquisitions, as highlighted in the earnings call. Financial performance shows robust revenue growth but is offset by high leverage and negative free cash flow. Technical indicators suggest a neutral trend, while valuation metrics indicate a fair market price. The company’s strategic focus on capital investments and regulatory successes supports its long-term growth outlook.
To see Spark’s full report on AWK stock, click here.
More about American Water
American Water Works Company, Inc. is a leading regulated U.S. water and wastewater utility company. It provides essential utility services, focusing on delivering safe, clean, reliable, and affordable water and wastewater services to its customers across 17 states.
Average Trading Volume: 1,318,193
Technical Sentiment Signal: Strong Buy
Current Market Cap: $28.62B
For an in-depth examination of AWK stock, go to TipRanks’ Overview page.