Jefferies analyst Julien Dumoulin-Smith initiated coverage of American Water with an Underperform rating and $124 price target The firm struggles to justify a roughly 45% premium to electric peers as it sees EPS growth slowing as balance sheet pressures grow, the analyst tells investors. Along with a “lack of data center thematic,” the firm highlights difficulties offsetting about $80M interest income post-2026; acquisition challenges and a dependency on M&A; and rising regulatory uncertainties, particularly after a Pennsylvania regulatory setback.
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