American Water initiated with a Buy at Mizuho

Mizuho initiated coverage of American Water with a Buy rating and $134 price target. American Water operates in premium regulatory jurisdictions across the U.S. and management has taken a balanced approach to capital allocation and execution around a robust capital plan with minimal regulatory lag, the analyst tells investors in a research note. The firm believes the shares should trade at a 13% premium to the water utility group. Post the equity issuance earlier this year, American Water should not need additional equity until 2027 year-end, says Mizuho.