Analysts React to American Water Works Surpassing Target Price
In recent trading, shares of American Water Works Co, Inc. (Symbol: AWK) have exceeded the average analyst 12-month target price of $139.91, currently trading at $143.15 per share. When a stock reaches its target price, analysts typically have two options: downgrade based on valuation or adjust the target price higher. Their response may also hinge on fundamental developments driving the stock price upwards. If positive indicators emerge for the company, it may warrant an increase in the target price.
The average target for American Water Works Co, Inc. reflects contributions from 11 analysts within the Zacks coverage universe. While the average is a useful metric, it masks the variance among individual analyst forecasts—some project lower targets, such as $115.00, while others are more optimistic, setting targets as high as $159.00. The standard deviation of these targets stands at $13.78.
The primary value of examining the average AWK price target lies in the collective judgment of diverse analysts rather than solely relying on one expert’s opinion. With AWK now above the average target of $139.91 per share, this prompts investors to reassess the company’s potential. They may consider whether $139.91 is merely an interim stop toward an even higher target, or if the current valuation signals a good point to take some profits.
| Recent AWK Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 4 | 4 | 4 |
| Buy ratings: | 0 | 0 | 0 | 1 |
| Hold ratings: | 8 | 8 | 8 | 8 |
| Sell ratings: | 2 | 2 | 2 | 2 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.57 | 2.57 | 2.57 | 2.53 |
The average rating listed above is based on a scale from 1 to 5, with 1 representing a Strong Buy and 5 indicating a Strong Sell. This article utilized data from Zacks Investment Research via Quandl.com. For the latest research on AWK, check out the Zacks report—available for free.
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• UEC Stock Predictions
The views expressed herein are solely those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
