RY 136.23 1.1208% TD 82.27 1.5178% SHOP 106.7 0.1502% CNR 178.63 1.0351% ENB 48.81 0.8888% CP 120.08 1.2735% BMO 130.77 0.3222% TRI 211.67 0.408% CNQ 102.44 0.392% BN 56.39 1.2024% ATD 77.26 0.1166% CSU 3730.29 -0.3412% BNS 69.42 1.4023% CM 67.9 -0.6584% SU 49.5 0.0202% TRP 53.8 -2.0215% NGT 47.86 3.6155% WCN 233.02 0.8483% MFC 33.43 1.8276% BCE 46.5 1.087%
American Water Works Company, Inc.
AWK Details
American Water Works Company, Inc. (NYSE: AWK) is a company that provides water and wastewater services. Regulated Businesses, which comprise the ownership of utilities that offer water and wastewater services to residential, commercial, industrial, public authority, fire service, and sale for resale consumers, is one of the company's business segments. It owns the physical assets used to store, pump, treat, and supply water to its customers, as well as the wastewater that it collects, processes, transports, and recycles. Its Military Services Group contracts with the US government for long-term water and wastewater services in several military locations. Through its Contract Services Group, it also has contracts with municipal clients to run and manage water and wastewater facilities and provide other associated services.
Latest News:
FY21 Results:
Key Risk:
Outlook:
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation:
AWK' stock price has fallen 4.0% in the past six months and is currently trading close to mid-point of its 52-week range of USD 144.20 to USD 189.65. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 195.45.
Considering the correction in the stock price, strong margins, robust dividend yield, current valuation, and associated risks. We recommend a "Buy" rating on the stock at the closing price of USD 162.44, down 2.24% as of April 18, 2022.
Three-Year Technical Price Chart (April 18, 2022). Source: REFINITIV, Analysis by Kalkine Group
Technical Analysis Summary:
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.
Disclaimer
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