SJW Group downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Shelby Tucker downgraded SJW Group to Sector Perform from Outperform with a price target of $85, up from $76. The stock had a strong 2022 outperformance relative to negative returns for the majority of its water peers, and he continues to like the company amid the elimination of its liability related to water costs in California, which should provide greater earnings insight and steady the growth rate, the analyst tells investors in a research note. Tucker adds however that his rating change is valuation driven, as his new price target implies a 15% premium to the average earnings multiple of its peers.