** Jefferies lifts PT on American Water Works AWK.N to $124 from $114, upgrades rating to "hold" from "underperform"

** New PT implies a 3.2% downside to the stock's last close

** Brokerage says co's recent ~10% share pullback post-merger brings valuation back in line

** AWK recently bought Essential Utilities WTRG.N in an all-stock deal valued at more than $12 billion, according to Reuters calculations

** Jefferies pro-forma analysis suggests WTRG deal could increase AWK's income by ~4%-5% by 2028

** Brokerage flags lengthy approval process, expects potential trade-offs and concessions ahead of expected Q1 2027 close

** Three of 15 brokerages rate the stock "buy" or higher, 10 "hold" and two "sell"; their median PT is $143.5, according to data compiled by LSEG

** As of last close, shares up 2.9% YTD

(Reporting by Megavarshini G. Somasundaram in Bengaluru)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))