UBS analyst Gregg Orrill initiated coverage of American States Water with a Sell rating and $92 price target as part of a broader research note on Water Utilities titled "Looking for Value". Water utilities have attractive characteristics for a defensive market environment and offer positive fundamentals which include 7% EPS growth potential, significant investment opportunities from pipe replacement and water access, the analyst tells investors in a research note. Orrill adds however that American States Water stock trades at a 18% premium to the Water Utility average and that he is also concerned with the company’s rate case settlement by the California Public Utility Commission.
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