American Water initiated with an Outperform at Huntington

Huntington analyst Michael Gaugler initiated coverage of American Water (AWK) with an Outperform rating and $148 price target. The company's water and wastewater operations are located in "constructive" regulatory jurisdictions, its rate base growth guidance is the highest in the water utility sector, and the upcoming merger with Essential Utilities (WTRG), if consummated, will increase its market cap to roughly double the rest of water utility sector combined, the analyst tells investors in the firm's initiation of the water utility industry.