SJW Group initiated with a Neutral at BofA

BofA initiated coverage of SJW Group with a Neutral rating and $65 price target. SJW currently trades at a 15%-plus discount to the average U.S. water group P/E, despite an improving earnings quality mix and more transparent investor communications, notes the analyst. However, the firm starts the stock at Neutral despite the discount to reflect uncertainty around potential future acquisitions and “a perceived degradation in the Connecticut regulatory environment,” the analyst added.