Oct. 16, 2015, 12:57 PM
- American States Water (AWR -3.1%) is downgraded to Sell from Neutral at Janney, which says shares are trading at a significant premium to other players in the water utility segment.
- AWR’s low payout ratio of ~55% can support further dividend increases, but the company’s earnings growth during 2015-17 likely will be constrained unless it secures significant new military base contracts, the firm says.
- A better than expected outcome of the California General Rate Case could have a positive impact on AWR’s earnings, Janney notes.
American States Water Co. is a holding company, which engages in the purchase, production, distribution, and sale of water. It operates through the following segments: Water, Electric, and Contracted Services. The company was founded on December 1, 1929 and is headquartered in San Dimas, CA.
Industry: Water Utilities
Country: United States