American States Water downgraded to Underweight at Wells Fargo

Wells Fargo downgraded American States Water to Underweight from Equal Weight with a price target of $89, down from $94. The stock’s 8% price-to-earnings premium to its water peers on 2024 and 2025 estimates “is more than adequate,” the analyst tells investors in a research note. Wells maintains its rating bias within the water sub-sector to reflect a cautious stance relative to other utility sub-sectors, saying waters trade at a 60% P/E multiple premiums to regulated electric and gas utilities.